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Business Studies AS > External influences (SBL) > Flashcards

External influences (SBL) Flashcards

1
Q

06/09/16

What is a competitive market?

A

A market in which there are a large number of sellers. Competition is mainly based on price

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2
Q

06/09/16

What is a mark up?

A

The difference between the cost of producing an item and the price at which it is sold

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3
Q

06/09/16

What is a market price?

A

Although there is no such thing as a ‘market price’, in the sense of a single price for a product, there is a price range in a market at which consumers are prepared to pay

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4
Q

06/09/16

Why do physical markets continue to exist?

A

The personalisation they offer

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5
Q

06/09/16

Why have non physical markets grown rapidly?

A

The convenience they offer

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6
Q

06/09/16

Markets can be what?

A

Physical or non physical

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7
Q

06/09/16

What is a market?

A

Any situation where buyers and sellers are in contact in order to establish price

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8
Q

06/09/16

What is competition?

A

Rivalry amongst sellers

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9
Q

02/09/16

How do you work out profit?

A

Revenue - costs

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10
Q

02/09/16

How do you work out revenue?

A

Selling price x quantity

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11
Q

06/09/16

What is a monopoly?

A

A market dominated by one seller

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12
Q

16/09/16

How many firms, what are their prices and give an example of a monopoly shop?

A

1 firm
Sometimes higher prices
Example is tesco as it dominates 29% of the market so it is considered to be in the monopoly

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13
Q

16/09/16

How many firms are in a competitive market compared to a monopolistic market?

A

They both have lots

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14
Q

16/09/16

What are the prices of competitive market and monopolistic market?

A

Competitive prices are lower and monopolistic markets are where price doesn’t apply

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15
Q

16/09/16

Give examples of competitive and monopolistic competition

A

Competitive - morrisons, Aldi, waitrose, lidl, ocado

Monopolistic - taxis

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16
Q

16/09/16

What do monopolistic competition offer

A 
Non price differences:   (Example of a taxi
Late pick up times 
Disabled access 
Luxury cars 
Good customer reviews 
Personal drivers
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17
Q

16/09/16

What does economies of scales mean

A

Economies of scales arise when unit cost falls as output rises

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18
Q

16/09/16

What is a business considered if it has 25% or over market share

A

Monopoly

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19
Q

16/09/16

Why don’t governments allow monopolies

A

The price will be too high. No business is at either end of the spectrum, they’re more in the middle

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20
Q

16/09/16

What is an oligopoly and give an example

A

An oligopoly exists where a market is dominated by a few firms. The mobile phone market is an example of an oligopoly

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21
Q

16/09/16

How do oligopolies compete

A

The products and prices are similar.

If one store cuts prices, another will too

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22
Q

16/09/16

Give monopolistic competition examples

A 
Shoe repairs and key makers 
Taxi and minibus companies 
Sandwich bars and coffee stores 
Hairdressing salons 
Dry cleaners and laundrettes 
Bars and nightclubs
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23
Q

16/09/16

What is a monopolistic competition

A

Where you have a lot of firms using non pricing strategies to bring customers in

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24
Q

16/09/16

What is meant by market size

A

The number of individuals in a market who are potential buyers of a product/service

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25
Q

16/09/16

What is meant by market growth

A

This refers to an increase in the demand for a businesses product. It is measured over a specific time and is expressed as a %

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26
Q

16/09/16

Why is it important for businesses to know the size of the market they are operating in

A

So they don’t overproduce or overprice their products. If they have a small market, they are more likely to be nearer the monopoly side rather than the competitive side

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27
Q

16/09/16

What is meant by market share

A

This is the share of the total market that is owned by a particular business, product or brand

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28
Q

16/09/16

What are 6 strategies to increase market share

A

Be aware of customer needs and meet them
Sell more to existing customers
Have a clear marketing plan
Merge with a competitor
Find out why old customers no longer use your products
Use a variety of marketing techniques (pricing, advertising and promotion)

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29
Q

20/09/16

What does market dominance mean

A

The measure of strength of a business and its product(s) relative to the competition

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30
Q

20/09/16

What does barriers to entry mean

A

Factors that could prevent a firm from entering and competing in a market

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31
Q

20/09/16

What are 5 barriers of entry

A

Large start up costs (these will mainly be capital costs such as premise and machinery)
Having the marketing budget to break customer loyalties
The inability to gain economies of scales
The possibility that existing businesses will start a price war
Legal restrictions such as patents

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32
Q

21/09/16

Which market structures are likely to have high barriers to entry?

A

Competitive markets because there are a lot of firms and competitive prices

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33
Q

21/09/16

What do we mean by barriers to exit

A

The factors that could prevent a firm from leaving the market, even if they wanted to

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34
Q

21/09/16

What are the 3 barriers to exit

A

Difficulty of selling off capital
High redundancy costs
Contracts with suppliers (company will face legal challenge if these are not honoured)

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35
Q

21/09/16

What is a stakeholder

A

Any person interested in the business or organisation

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36
Q

04/10/16

What does CMA stand for

A

Competition and markets authority

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37
Q

04/10/16

What are the main roles for the CMA

A

Investigate mergers which could restrict competition
Investigate monopolies abusing the market
Bring criminal proceedings against individuals who commit the cartel offence

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38
Q

04/10/16

What are the main 2 sanctions the CMA can do

A

The business involved can be fined to 10% of their global turnover
Individuals can be disqualified from being a company director

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39
Q

03/10/16

What is price

A

The amount customers pay for a product

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40
Q

03/10/16

What is cost

A

The amount spent by a business making the product

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41
Q

03/10/16

What is merging

A

Where two companies join together to form a new larger business

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42
Q

03/10/16

What is acquisition

A

Where control of another company is achieved by buying a majority of its shares

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43
Q

03/10/16

What is an acquisition usually known as

A

Takeover

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44
Q

05/10/16

What is demand

A

The amount of a good/service that customers are willing and able to buy at any given price

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45
Q

05/10/16

What is supply

A

The amount of a good/service that sellers are willing and able to sell at any given price

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46
Q

05/10/16

What is meant by the equilibrium

A

The situation in a market where demand is equal to supply

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47
Q

10/10/16

What are the 8 factors that determine demand

A 
Price 
Income
Wealth
Advertising promotional offers and public relations
Taste and fashion 
Demographic changes 
Government action
The price of other products (substitutes, complements)
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48
Q

10/10/16

What happens to the demand curve when price is a factor

A

There is no new demand curve

Customers simply move along an existing demand curve

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49
Q

10/10/16

What happens to the demand curve when income is a factor

A

High income - curve shifts to the right
Low income - curve shifts to the left
A new equilibrium is made too

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50
Q

10/10/16

What is wealth, give and example and state how will it affect the demand curve

A

This is the combined value of savings, shares owned and your house
Eg/ house prices increase from £310,000 to £355,000. Negative impact on demand meaning the curve will shift to the left

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51
Q

10/10/16

What is advertising, promotional offers and public relations and give and example and state how it will impact demand and the curve

A 
TV ads (BOGOF) and sponsorship of sports teams
Eg/ when firms spend a lot of money on this, it has a positive impact and will shift the curve to the right
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52
Q

10/10/16

What is taste and fashion

A

Fashionable products like clothing and technology

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53
Q

10/10/16

Give an example and state how demand and the curve is impacted in taste and fashion

A

Eg/ an increase in these being sold and advertised has a positive impact on demand and will shift the curve to the right

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54
Q

10/10/16

What is demographic changes, give an example and state how this will affect demand and the curve

A

This is how the population affects spending
Eg/ decrease in population from 50,000 to 42,000 will have a negative impact on demand and will shift the curve to the left

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55
Q

10/10/16

What is government action, give an example and state how it affects demand and the curve

A

This is campaigning by the government
Eg/ to encourage a healthier lifestyle, the government has a keep fit campaign. The curve will shift to the right as this has had a positive impact of fitness products

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56
Q

10/10/16

What is the difference between substitutes and complements

A

Substitutes - a product that can be used instead of another one because it performs the same sort of function
Complement - products that are in joint demand. When one product is bought so is another

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57
Q

10/10/16

Give an example of substitutes and state whether this will negative or positively impact demand and where the curve will shift to

A

Apples and pears. Price of apples go down, people want apples not pears
Positive influence and shift the curve to the right

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58
Q

10/10/16

Give and example of a complement and state the impact and where the curve will shift to

A

DVDs and DVD players. Price of DVD player falls, increase for DVD players and DVDs
Positive impact and curve will shift to the right

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59
Q

14/10/16

What are the factors that determine supply

A 
Price
Costs
Taxes
Subsides
Price of other products
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60
Q

14/10/16

How will supply be affect if price goes up, where will the customers move and give an example

A

Supply will increase if price goes up
Customers will move up the supply curve
Eg/ price goes from £1-£1.30 supply will go from 1,000 to 1,500 customers will move up the curve with a positive impact

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61
Q

14/10/16

Give an example of how supply will be affected with cost decreases

A

Costs go from £25-£20. Supply decreases and curve moves to the left with a negative impact as it’s less profitable to keep selling these

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62
Q

14/10/16

How will supply be affected if tax rises on a specific car

A

Less of that car around. Curve will move to the left and have a negative impact for that specific car

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63
Q

14/10/16

What is a subsidy, and give an example

A

This is a payment from the government for every unit supplied. Eg/ solar panels. £1 per unit and the company sells 1000 units a week this means annual income of £52,000

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64
Q

14/10/16.

Give an example of how the price of other products affect supply

A

Fall in the price of fizzy drinks means it’s less profitable to supply them. (Low supply, curve moves left, negative impact)
If the price of fruit juice remains the same its more profitable to supply these instead

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65
Q

17/10/16

What is elasticity of demand

A

Measures how sensitive quantity demanded is to a change in price

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66
Q

17/10/16

What is meant by inelastic demand

A

Quantity is insensitive to a change in price

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67
Q

17/10/16

What makes products elastic

A

Many substitutes

Luxuries

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68
Q

17/10/16

Why is petrol a product of inelastic demand

A

Necessity (you have to go to work in a car no matter what the price of petrol)
No substitutes

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69
Q

17/10/16

What is meant by elastic demand

A

Quantity is sensitive to a change in price

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70
Q

04/11/16

What is globalisation

A

The process of growth in the worlds markets thorough a process of integration where it’s possible to trade in a global market in the same way as one would in a domestic market

(Businesses trading in other countries markets)

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71
Q

04/11/16

Why is there so many imports into the U.K.

A 
Cost of production is cheaper
Cheap labour
Reduced trade restrictions
Cheaper resources 
Better infrastructure 
Internet
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72
Q

04/11/16

Other factors that facilitate globalisation

A

Technology (smartphones)
Online banking
Increase in the movement of people
Rise of multinationals

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73
Q

04/11/16

What is a multinational

A

A company that is based in one country but manufacturers and sells products in a variety of other countries

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74
Q

04/11/16

Why are so many countries keen to be multinationals?

A

Economies of scales can be obtained
Ability to take advantage of lack of legal constraints
New markets with less competition
Ability to take advantage of lower wages

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75
Q

04/11/16

Positives and negatives of being a multinational company to LEDCs

A

Positives:
Employment opportunities for people in LEDCs
Lessens poverty and develops local skills
Investment in areas (infrastructure)
Utilisation of resources

Negatives:
Unskilled jobs so not much improvement
Low wages
Workers face difficult and unsafe conditions
Use of child labour
Income goes back to domestic market (USA)
People lose jobs in domestic market for people to have jobs in LEDCs
Not every company helps the economy and this could push local businesses out of the market

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76
Q

08/11/16

Why are some businesses more affected than others by globalisation

A

Services based businesses like a hairdressers is less likely to be effected because it’s a unique shop, whereas, m and s can get their products through technology to your door within hours

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77
Q

08/11/16

What is an emerging market

A

This refers to developing countries that are achieving rapid growth and industrialisation and are quickly achieving the status of developed markets

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78
Q

08/11/16

What do we mean by infrastructure

A

Road, rail and air links that allow people and output to move speedily around a country to help trade

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79
Q

08/11/16

Opportunities to an emerging market and threats to a domestic market

A

Opportunities: new markets, possibly with high disposable incomes
Opportunity to move production into other markets
Investment opportunities in infrastructure and production

Threats: lower labour costs
Reduced exports as the developing countries being to product for themselves
Greater independence from emerging economies

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80
Q

09/11/16

What does the HRM do

A 
Workforce planning
Recruitment & selection
Training & development 
Rewarding and motivating staff
Communication
Roles and responsibilities (organisational structures)
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81
Q

09/11/16

What is the Human Resource Management

A

This is about how people are managed by a business in order to meet the strategic objectives of the business

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82
Q

09/11/16

What is an organisational chart

A

This is a diagram that shows the hierarchy in a business, usually from top to bottom

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83
Q

09/11/16

What do we mean by span of control

A

The number of employees from whom a manager is responsible

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84
Q

14/11/16

What are the benefits of having a narrow span of control as a supervisor?

A

You know your employees better so you can create a more positive working environment

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85
Q

14/11/16

There is no correct number for having an effective span of control. The effectiveness will depend upon what?

A

The personality of the manager
The skills of the subordinates
The size of the business

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86
Q

18/11/16

What is meant by the chain of command

A

This is concerned with the way in which responsibility for employees is organised within a business

(Who you’re in control of)

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87
Q

18/11/16

What do we mean by levels of hierarchy

A

This refers to the number of levels or layers in a business organisation

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88
Q

18/11/16

What is delayering

A

A process of reducing the number of levels or layers in an organisation

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89
Q

18/11/16

Advantages of delayering

A

Reduces costs
More employee responsibility
Quicker decision making progress

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90
Q

18/11/16

Disadvantages of delayering

A

Span of control will increase
Redundancy payments
Damage to staff morale

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91
Q

18/11/16

What is meant by delegation and empowerment

A

Delegation:
Where responsibility for carrying out a task or role is passed onto someone else in the business
Empowerment:
This is giving employees the power to do their job. E.g./ the authority make the decisions, plan their own work and solve their own problems

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92
Q

21/11/16

What are tall and flat structures also know as

A

Mechanistic (tall)

Organistic (flat)

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93
Q

21/11/16

What type of span of control do tall and flat structures have

A

Tall - narrow span of control

Flat - wide span of control

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94
Q

21/11/16

Advantages and disadvantages of tall structures

A

Advantages

  • Promotion opportunities
  • More direct contact with manager

Disadvantages

  • Less motivated so employees don’t feel as though they’re trusted as much
  • More layers of communication
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95
Q

21/11/16

Advantages and disadvantages of flat structures

A

Advantages

  • Less layers of communication
  • More delegation so employees feel more motivated

Disadvantages

  • Less promotion opportunities
  • Less of a relationship with your manager
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96
Q

21/11/16

What is a system structure

A

Arranging the business according to what each department does

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97
Q

21/11/16

What is a product structure

A

Organising according to the different products made

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98
Q

21/11/16

What does a clear structure make it easer to see

A

Which part of the business does what

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99
Q

21/11/16

Explain the ‘by system’ structure

A

The business is split into specialist areas. This means that each part of the ‘system’ has some input into the output of the businesses product(s)/service(s)
E.g. production, finance, purchasing, HR

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100
Q

22/11/16

Advantages and disadvantages of a by system structure

A

Advantages - specialists can concentrate on what they do best
Disadvantages - each part may act as a separate entity, concerned with its own agenda
- it can be difficult to accredit success and/or blame
- departments may not be able to clearly see their success

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101
Q

22/11/16

What is meant by organisation by product system

A

Each product becomes a ‘mini company’ with its own finance, HR, marketing departments etc

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102
Q

22/11/16

Advantages of an organisation by product system

A

You’ll be able to see the success or blame in each department
Managers can focus energies on one product
Each centre has a lot of autonomy (independence)
Teams can see the direct result of their work
Specialist departments

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103
Q

22/11/16

Disadvantages of an organisation by product system

A

Different products compete for resources (i.e. Finance). This can cause conflict
Duplication of departments (i.e. HR) can waste resources

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104
Q

22/11/16

What is a matrix structure

A

This is where individuals work across teams and projects as well as within their own department or function

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105
Q

22/11/16

Advantages of a matrix structure

A

Can help to break down traditional barriers improving communication across the entire organisation
Can allow individuals to use particular skills within a variety of contexts
Avoid the need for several departments to meet regularly, so reducing costs and improving coordination
Likely to result in greater motivation amongst the team members
Encourages cross-fertilisation of ideas across departments - e.g. Helping to share good practice and ideas

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106
Q

22/11/16

Disadvantages of the matrix structure

A

Members of project teams may have divided loyalties as they report to 2 line managers. Equally, this scenario can put project team members under a heavy pressure of work
There may not be a clear line of accountability for project teams given the complex nature of matrix structures
Difficult to co-ordinate
It takes time for matrix team members to get used to working in this kind of structure
Team members may neglect their functional responsibilities

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107
Q

28/11/16

How can a centralised structure be defined and who makes the decisions in a centralised structure

A

A centralised structure is a business that keeps decision making firmly at the top of the hierarchy

The board make the decisions

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108
Q

28/11/16

Advantages of centralisation

A

Easier to implement common policies and practices for the whole business
Prevents other parts of the business from becoming too independent
Easier to co-ordinate and control from the centre (e.g. With budgets)
Economies of scales and overhead savings easier to achieve
Quicker decision-making (usually) which is easier to show strong leadership

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109
Q

28/11/16

Disadvantages of centralisation

A

More bureaucratic - often extra layers in the hierarchy
Local/junior managers are likely to be much closer to customer needs
Lack of authority down the hierarchy may reduce manager motivation
Customer service : lost flexibility and speed of local decision-making

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110
Q

28/11/16

How can a decentralised structure be defined and who makes the decisions

A

In a decentralised structure, decision making is spread out to include more junior managers in the hierarchy, as well as individual business units or trading locations

Region 1 and 2 make the decisions

111
Q

28/11/16

Benefits of decentralised structures

A

Decisions are made closer to the customer
Better able to respond to local circumstances
Improved level of customer service
Can enable a flatter hierachy
Good way of training and developing junior management
Facilitates empowerment: should improve staff motivation

112
Q

28/11/16

Drawbacks of decentralisation

A

Decision making not necessarily ‘strategic’
Harder to ensure consistent practices and policies at each location
May be some diseconomies of scale - e.g duplication of roles
Who provides strong leadership when needed (e.g. In a crisis)
Harder to achieve tight financial control - risk of cost-overruns

113
Q

02/12/16

What is the recruitment process

A 
Identify a vacancy
Draw up a job description
Draw up a person specification
Advertise job
Review applications
Shortlist candidates
Interview
Appoint new employee
114
Q

02/12/16

What is a job description and what is a person specification

A

Job description - document that describes the details of a worker. For example, write letters and answer the telephone

Person specification - a profile of the type of person needed for a job - their skills and qualities. For example, friendly persona and English Language grade B

115
Q

02/12/16

What is internal and external recruitment

A

Internal recruitment is when a vacancy is filled with someone who already works in the organisation

External recruitment is when the organisation fills a post with someone from outside of the organisation

116
Q

06/12/16

What is a CV

A

A document that contains a high level of detail about your past work, history and education

117
Q

06/12/16

What is a CV

A

A document that contains a high level of detail about your past work, history and education

118
Q

06/12/16

What is a covering letter

A

Something that is sent alongside a CV

119
Q

06/12/16

What is included in a covering letter

A

Qualities
Personal statement
Why you want the job

120
Q

06/12/16

What are 3 methods of selection

A

CV
Covering letter
References

121
Q

06/12/16

What is the difference between a CV and a covering letter

A

A CV is a generic document but a covering letter is more personalised to the business about why you would fit with the organisation

122
Q

06/12/16

What is included in an application form

A 
Personal details
Availability
Nationality
Employment history
Criminal convictions
Date of birth
Verbal ability, maths and attitude tests
123
Q

07/12/16

Advantage and disadvantage of a CV

A

Advantage - shows candidates organisation

Disadvantage - doesn’t show personalisation

124
Q

07/12/16

Advantage and disadvantage of a covering letter

A

Advantage - shows why you want the job

Disadvantage - too many to go through

125
Q

07/12/16

Advantage and disadvantage of an application form

A

Advantage - all the same questions

Disadvantage - no personalisation

126
Q

07/12/16

What is psychometric testing

A

This helps to identify a candidates skills, knowledge and personality

127
Q

07/12/16

Explain the 2 types of psychometric testing:
A) personality tests
B) aptitude tests

A

A) personality tests explore your interests, values and motivations, analysing how your character fits with the role and organisation
B) aptitude tests assess your reasoning or cognitive ability, determining whether you’ve got the right skill set for a role

128
Q

06/12/16

What does a CV include

A

Employment history, references, personal details and hobbies

129
Q

04/01/17

What is an interview

A

Where an employer and candidate meet for the first time to discuss skills, knowledge and discuss the job avaliable in question

130
Q

04/01/17

Advantages of an interview

A

You can identify whether a person is interested in the job or not
Candidates can be compared

131
Q

04/01/17

Disadvantages of an interview

A

Candidates may not be honest

Candidates may be nervous and not perform well despite being suitable for the job

132
Q

09/01/17

What is training

A

This is the process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively

133
Q

09/01/17

Benefits of training

A 
Improves efficiency 
Customer satisfaction 
Improves employee motivation
Increase productivity 
Trained employees require less supervision 
Equips staff with their skills
Helps the business to achieve their aims
134
Q

09/01/17

What should be in an induction

A

Health and safety
Fire exits
Tour of the store to know where things are
Summary of job duties
Introduction to staff members
Contract info (break, holidays)
Disciplinary procedures (things not to do)

135
Q

27/01/17

Name 2 new training methods

A

Distance and e-learning

Vocational training

136
Q

27/01/17

What is shadowing

A

This type of training depends on the business having spare capacity so that an experienced member of staff can deliver it

137
Q

27/01/17

What is distance and e-learning

A

Individuals take responsibility for their own work under the supervision of a mentor/tutor

138
Q

27/01/17

What is vocational training

A

This is instruction in the practical skills needed for certain jobs

139
Q

27/01/17

What is the government now involved in in terms of training intiatives

A

Investors in people - this is developing skills in the workforce to meet government criteria in areas such as customer service

The Skills Funding Agency - this is a government organisation that provides £4 billion of support for colleges, private trainers and employees

140
Q

30/01/17

What is an appraisal

A

This is a formal assessment of an employees performance

141
Q

30/01/17

What will the organisation be aiming to achieve in an appraisal

A 
Strengths
Development areas 
Training needs
Pormotion opportunities 
Pay
Bonuses
142
Q

30/01/17

Benefits of an appraisal

A

Build a closer working relationship

143
Q

30/01/17

Disadvantages of an appraisal

A

There may be a lack of commitment by senior staff
Line managers can be inconsistent
May not be enough time
Managers may not take employee concerns and aspirations seriously
Unrealistic targets could be set
Ambiguous language such as “you haven’t don’t too badly” could be used

144
Q

30/01/17

Sections to an appraisal

A 
Review of employees performance 
Accomplishments 
Employee details
Achievement of previous targets 
Strengths
Future targets 
Action plan
145
Q

30/01/17

What is meant by self assessment method of appraisal

A

This is when employees assess their own performance, often using a tick sheet to grade aspects of their work. This can be used as a stand alone method or in advance if a management appraisal

146
Q

30/01/17

What is meant by a 360 degree appraisal

A

This involves an employee receiving feedback from several people in the organisation. This is more appropriate for staff that work in large businesses with multiple teams

147
Q

30/01/17

What is meant by a peer assessment appraisal

A

This is when the appraisal is carried out by a work colleague

148
Q

31/01/17

Benefits of a self assessment appraisal

A

Employees can see areas of development

149
Q

What is meant by employer/employee relations

A

This is the relationship between management and employees at national or local level

150
Q

Identify 3 benefits of positive employer/employee relations

A

Willingness to compromise
Ability to co-operate
Mutual trust

151
Q

Identify 3 negative impacts of poor employer/employee relations

A

Co-ordination may be affected
Employees must be comfortable to stay motivated
Employees not pleased with their work may change their job frequently

152
Q

What is meant by a trade union

A

This is an organisation of employees that seeks to protect and improve the interests of its members. It does this by negotiating with employers on pay and conditions of work

153
Q

What is industrial action

A

This is action taken by employees of a company as a protest, especially striking or working to rule

154
Q

3 examples of industrial action that an employee might take

A

Strike
Actions short of a strike
Lock out

155
Q

What is a strike

A

Where workers refuse to work for their employer

156
Q

What is actions short of a strike

A

Where workers take action such as working to rule, go slows, overtime bans or callout bans

157
Q

What is meant by a lock out

A

A work stoppage where the employer stops workers from working

158
Q

What is meant by employee participation

A

This is where employees have the ability to participate in the decision making process at work

159
Q

Identify the benefits of employee participation

A

Increased levels of motivation
Better communication
Improved quality of decision making
Complying with the law
Reduced labour turnover and, therefore, reduced recruitment costs
Fewer days lost through work-related injuries and illnesses
Ability to manage change more effectively

160
Q

What I said meant by a works council

A

This is a formal meeting of managers and employees in a particular factory (or the business as a whole) to discuss pay and working conditions or grievances, and negotiate issues such as changes in working practices

161
Q

31/01/17

Factors that help ensure an appraisal system is effective

A

You need a good third party non judgemental mentor to assess the employers performance
An employee that is bothered about appraisals so it doesn’t waste any productivity time
An mployer who doesn’t feel it’s a waste of time.

162
Q

What is meant by labour turnover

A

This is the percentage of workforce (employees) that leave a business within a given period (usually a year)

163
Q

What is the formula for calculating labour turnovers

A

(Number of employees leaving during period/average number employed during period) x 100

164
Q

Why are the issues caused by high levels of staff turnover

A

Higher costs
Increased pressure on remaining staff
Disruption to production
Harder to maintain required standards of quality and customer service

165
Q

Why is labour productivity important

A

This could lead to higher wages and better working conditions. For the government, increased productivity means higher taxes

166
Q

Which factors impact labour productivity

A

Qualifications and morale of workers
Rules and regulations
Substitution of capital to labour

167
Q

What Is the formula for calculating labour productivity

A

Output/average number of employees

168
Q

What is the formula for calculating absenteeism

A

(Total days absent in a month x 100) / (total available working days in a month x number of employees)

169
Q

Why does sickness represent a cost for the business

A

Because there will be less production made, however, the fixed costs will stay the same whether you have all of your staff working or just a few of them

170
Q

What is the formula for calculating lateness

A

(Total number of late arrivals x 100) / (total number of scheduled arrivals x number of employees)

171
Q

10/02/17

What is redundancy

A

This is a form of dismissal. It happens when employees need to reduce their workforce

172
Q

10/02/17

What is dismissal

A

This is the termination of the contract of employment of an employee, often as the result of a disciplinary procedure

173
Q

10/02/17

What is unfair dismissal

A

Where an employee is dismissed without a valid reason OR th employer fails to follow the proper procedures

174
Q

10/02/17

State the dismissal process

A

First verbal warning
First written warning
Final written warning
Dismissal

175
Q

10/02/17

What is meant by ACAS

A

Advisory
Conciliation
And arbitration service

176
Q

20/02/17

Main points about autocratic leadership

A

Full control of decision making
Employees have little or no input
Motivation through rewards
Use power to get others to carry out work as a result of this decision making

177
Q

20/02/17

Main points about paternalistic leadership

A

Leader decides what is best for employees and addresses their needs
Akin to a parent/child relationship - where the leader is seen as a ‘father figure’
Still little delegation
Typical paternalistic leader explains the specific reason as to why he/she has taken certain actions

178
Q

20/02/17

Main points about democratic leaderships

A

Focus of power is more with the group as a whole
Leadership functions are shared within the group
Employees have greater involvement in decision making
Emphasis on delegation and consultation

179
Q

20/02/17

Main points about a laissez-fairy leadership

A

Gives employees little direction
As a result, responsibility lies with the group
Leaders get employees to choose how to complete objectives, make decisions and resolve problems on their own

180
Q

21/02/17

Advantages of a paternalistic leadership

A

Persuades employees to think negatively about their views - this encourages employees to improve
Closer working relationship leading to increased motivation

181
Q

21/02/17

Disadvantages of a paternalistic leadership

A

Employer may view the employee as their responsibility so treat them as a child

182
Q

21/02/17

Advantages of an autocratic leadership

A

Found in highly centralised businesses so there needs to be a strict work order
Important deadlines that need to be met is a good situation here
Decision making is quicker

183
Q

21/02/17

Disadvantages of an autocratic leadership

A

Could be stern and abrupt which could lead to demotivation from employees
More difficult relationship as the employer is viewed as stern so less communication
Employee may feel they are being controlled

184
Q

21/02/17

Advantages of a laissez-faire leadership

A

Good for particular projects as a manager may not want to be seen to be constantly ‘checking up’ on employees
Employees can become well motivated and enjoy responsibilities

185
Q

21/02/17

Disadvantages of a laissez-faire leadership

A

May appear distant from the workplace meaning employees may feel uncomfortable
Business will be ineffective if employees don’t enjoy responsibilities

186
Q

21/02/17

Advantages of a democratic leadership

A

Friendlier and willing to listen
Encourage creativity and autonomy at all times
Inclusive so should lead to better decisions being taken
Closer working relationship so easier to communicate leading to quicker decision making

187
Q

21/02/17

Disadvantages of a democratic leadership

A

Not good at getting important deadlines met as there is less responsibility on the top employer
Process takes more time, but time isn’t always available

188
Q

22/02/17

How does a theory X manager view employees (autocratic)

A

Most employees dislike work and will avoid it as mich as possible
Managers need control, threaten punishments and force workers to do their job
Most employees prefer to be directed, avoids responsibility and have low ambition
Employees are motivated by fear and money

189
Q

22/02/17

How does a theory Y manager view employees (democratic)

A

Employees like to work
People enjoy working towards goals
Commitment to goals increases based on perceived reward for achieving them
Most employees seek responsibility
An mployees intellectual potential is only partially realised
Employees are motivated by a variety of rewards

190
Q

27/02/17

What is motivation

A

A strong desire to act in a particular way and achieve a certain result (the will to want to work)

191
Q

27/02/17

What is morale

A

Refers to ‘spirit’. If morale in an individual, group or team is high then there exists a spirit of confidence, purpose etc

192
Q

27/02/17

Benefits of a motivated workforce

A 
Reduces absenteeism and lateness
Increased productivity
Reduced employee takeover
Commitment (extra work)
Business reputation
Change easier to implement
193
Q

27/02/17

What is included in monetary methods of motivation

A

Commission
Profit sharing
Bonus payment
Piece rates

194
Q

27/02/17

What is included in non monetary methods of motivation

A 
Job enrichment
Job enlargement 
Team work
Environment
Praise and fear
195
Q

27/02/17

What do we mean by piece rates

A

Receiving a set amount of money per product you manufacture (weakness is lower quality products)

196
Q

27/02/17

What do we mean by job enrichment

A

Giving an employee extra responsibility

197
Q

27/02/17

What do we mean by job enlargement

A

When an employee gets more jobs to do

198
Q

03/03/17

Key aspects to Taylor’s motivation theory (1856 - 1917)

A
  • scientific approach - this means that the same approach can be replicated
  • jobs are broken down into simple tasks and then the best suited candidates are trained to specialises in their task
  • workers are paid via piece rate
  • the theory is of the belief that linking reward to effort increases productivity
199
Q

03/03/17

Limitations to Taylor’s motivation theory (1856 - 1917)

A
  • not suitable for all jobs
  • doesn’t take into account psychological factors (feelings)
  • outdated - more workers now looking for job satisfaction
200
Q

03/03/17

Key aspects to Mayo’s motivation theory (1880 - 1949)

A

-research pointed to the fact that psychological factors are also important

201
Q

03/03/17

Limitations to Mayo’s motivation theory (1880 - 1949)

A
  • implementing all of these changes means that it is difficult to know which is helping to increase productivity
  • in the 21st century, workers may take these factors for granted
202
Q

03/03/17

What is meant by a content theory

A

This deals with the issue of ‘what motivates employees?’ And are therefore concerned with identifying needs and then using motivation to fulfil these needs

203
Q

03/03/17

What is meant by a process theory

A

This deals with the ‘process’ of motivation itself and are concerned with the issue of ‘how motivation occurs’

204
Q

03/03/17

Key aspects of McClelland’s motivation theory (1917 - 1998)

A
  • three needs theory (achievement, affiliation, power)
  • if one of the needs is more dominant, it will influence a workers behaviour
  • believed that if an employees dominant need is identified, then they can be managed and thus motivated appropriately
205
Q

03/03/17

Limitations of McClelland’s motivation theory (1917 - 1998)

A
  • meeting an employees needs will not always be beneficial for the business
  • workers personalities aren’t necessarily what drives them at work
  • meeting one employees needs may demotivate other employees
  • employees often need to be ‘all rounders’
206
Q

03/03/17

What does affiliation mean and give the characteristics of an affiliation personality

A

This is the idea of belonging to something
Characteristics:
-prefers to collaborate
-people orientated rather than task orientated

207
Q

03/03/17

Give achievement and power characteristics

A 
Achievement characteristics:
-prefers challenging goals 
-likes to work on a task/project 
-likes to work with others 
Power characteristics:
-likes to influence and encourage
-enjoys recognition and status
208
Q

03/03/17

Key aspects of Herzberg’s motivation theory (1923 - 2000)

A
  • two factor theory (hygiene, motivating)
  • hygiene factors are factors such as pay and working conditions. Herzberg believed that the absence of them caused dissatisfaction, but that employees aren’t motivated by them
  • motivating factors are factors such as responsibility, recognition, praise, rewarding work and promotion
209
Q

03/03/17

Limitations of Herzberg’s motivation theory (1923-2000)

A
  • the way in which workers classify factors may depend on the nature of their job
  • employees personalities may also influence how much importance they place on particular factors
  • some people may get job satisfaction from hygiene factors - particularly the environment
  • job enlargement and rotation may be simply viewed as ‘more work for the same pay’
  • may be a challenge to enrich unskilled workers
210
Q

03/03/17

Limitations to Maslow’s motivation theory (1908 - 1970)

A
  • some employees may not require their higher order needs to be met in work
  • order of needs may be different per person
  • it would be a challenge for businesses to meet all the needs of every employee
211
Q

03/03/17

5 stages of Maslow’s hierarchy of needs (top to bottom)

A 
Self actualisation (self fulfilment - promotion)
Self esteem (employee of the month)
Social needs (teamwork)
Safety needs (health and safety checks)
Survival
212
Q

06/03/17

Key aspects to Vroom’s motivation theory (1932-)

A

Expectancy theory
Employees will firstly make decisions based upon what they expect will happen i.e. whether they believe they are able to fulfil a task
Employees will also take into account valence
Vroom’s research suggests that people have to believe that they are able to gain a reward they desire

213
Q

06/03/17

What is meant by valence

A

This is the value that they place on the reward on offer

214
Q

06/03/17

Vroom’s idea of managers roles to achieve motivation

A

Managers can calculate the likelihood of motivation by calculating the expectancy by valence
Managers must make sure that the reward is worth having and that promises of rewards are fulfilled
Managers must ensure resources to achieve are in place
Managers must ensure targets are achievable

215
Q

06/03/17

Calculation to work out motivation and explanation

A

Motivation = (valence x expectancy)
0=no motivation
1=full motivation
Having a high level of motivation means the employee will be more motivated to achieve the task

216
Q

06/03/17

Limitations to Vroom’s motivation theory

A

Valence isn’t scientific (opinionated)
People place different values on rewards
Reward might be difficult to correlate to performance
Costs of financial rewards might be too high

217
Q

06/03/17

Key aspects to Drucker’s motivation theory (1909-2005)

A

‘The King of the management gurus’
Drucker believed good management was crucial. He referred to it as … “the organ that converts a mob into an organisation and human effort into performance”
He believed people are an asset, and not a cost to be minimised
He is known for his concept of ‘management by objectives’

218
Q

06/03/17

Key suggestions about Drucker’s motivation theory

A 
Decentralise and delayer as much as possible
Take an interest in your employees
Offer on-going training 
Consider employees social needs at work
Ensure rewards are fairly shared 
Communicate objectives
Set goals with employees
Coined the term 'knowledge worker'
219
Q

06/03/17

Limitations to Drucker’s motivation theory

A

Relies on good leadership skills

Some employees wont be motivated by ‘non-monetary’ methods

220
Q

06/03/17

Key aspects to Locke’s motivation theory (1938-)

A

Goal setting theory
Locke proposed that employees like to have goals and enjoy working towards them
Locke’s research suggests 5 principles that should be followed when setting goals. These are: clarity, challenge, feedback, commitment and task complexity
Conclusions of his research state that effective goals are specific and challenging to achieve

221
Q

06/03/17

Limitations to Locke’s motivation theory

A

Employees may work towards goals at the expense of other parts of their job
Setting targets alone will not necessarily work
Goal setting requires monitoring and feedback
Can be demotivating if employees don’t achieve goals
Goal setting may prevent employees considering wider organisation

222
Q

06/03/17

Key aspects to Peter’s motivation theory (1942-)

A

Management guru
Said managers dislike change and are obsessed with 3 things : numbers, control and bureaucracy
The theory of excellence

223
Q

06/03/17

Key suggestions to Peter’s motivation theory

A

Recognition of employees is needed
Managers should give employees a sense of self worth
Encouraging participation
Trying to offer continuous employments (this gives employees a sense of security)

224
Q

06/03/17

What is meant by the theory of excellence

A

This is how an organisation sets out to get excellence from all employees

225
Q

06/03/17

Limitations to Peter’s motivation theory

A

Peter’s has been accused of inconsistency
Depends on leaders abilities to be able to get excellence out of the employees
Not all employees want to be excellent

226
Q

How is market share calculated

A

(Sales value/volume for the individual business/sales value/volume for the whole market) x 100

227
Q

How is market growth calculated

A

(Increase (or decrease) in total sales by value or volume/original sales value or volume) x 100

228
Q

What is meant by market segmentation

A

The process where the market is split in to different groups with different characteristics and needs

229
Q

What is meant by contract of employment

A

This is an agreement between a business and an employee, under which each of them has certain obligations

230
Q

What is the minimum wage legislation

A

The Minimum Wage Act 1999 lays down the minimum level of pay to which employees aged 18 years and over in the UK are entitled. It doesn’t matter if an employee if in a part-time or full-time employment

231
Q

What is the Health and Safety at work act 1974

A

This creates a healthy and safe working environment so an employees health, safety and welfare at work are protected by law. The HSWA places a duty on employees to comply with legal provisions regarding health and safety. A business must comply ‘so far as is reasonably practicable’

232
Q

What is the equality act 2010

A

This reasserted that women and men are entitled to be paid equal amounts for work of equal value. The same reasoning applies to the provision of any benefits such as private healthcare or a company car

233
Q

What is the data protection act 1984

A

This makes sure the business is not allowed to disclose employee-related records to other individuals within the business or another organisation. It is designed to prevent harm resulting from the misuse of any data that is held

234
Q

`What is meant by grievances

A

This exists when an employee has a concern, complaint or problem. They should be dealt with at an early stage, informally, with an employees immediate line manager

235
Q

What is meant by the working time directive

A

This is where a business must not allow an employee to work more than 48 hours per week on average. It is partly aimed at reducing the UK’s culture of long working hours. There are also provisions relating to an employee entitlement to rest breaks and the pattern of shifts that can be worked

236
Q

What is the work and families act 2006

A

Maternity leave was already a legal right and this act enshrined the right to paternity leave in law. It also introduced rights to paid leave for parents adopting children, and the right for parents of young children to apply to work flexibly

237
Q

What is meant by an employment tribunal

A

This is a special sort of court dealing only with employment law; for example, an employees claim for unfair dismissal, discrimination or victimisation by their employer

238
Q

How do EU regulations and directives differ from EU legislation

A

Legislation emanating from the European parliament is different from regulations as they have to be adopted and applied in a certain way, whereas it is up to the individual member country to decide how to implement a directive

239
Q

17/03/17

Give examples of the types of market segmentation with examples

A
  • age (cruises aimed at pensioners)
  • location (south uk aimed at older people - Bournemouth)
  • gender (tampons)
  • social class (bentleys aimed at upper class)
  • residence (type of accommodation)(council house)
  • religion or ethnic grouping
  • income (Rolex watches are aimed at higher income)
240
Q

17/03/17

Benefits of market segmentation to a business

A
  • better matching of customer needs
  • enhanced profits for business
  • better opportunities for growth
  • retain more customers
  • target marketing communications
  • gain share of the market segment
241
Q

17/03/17

Limitations of market segmentation to a business

A
  • lack of information and data: some markets are poorly researched with little information about different customer needs and wants
  • difficulty in measuring and predicting consumer behaviour: humans dont all behave in the same way all of the time
  • hard to reach customer segments once identified
242
Q

17/03/17

What is meant by market research

A

This is the process of discovering customers needs and wants, through the collection and analysis of data about a particular target market

243
Q

17/03/17

What is meant by quantitative research

A

Objective/ involves the collection of numerical data

244
Q

17/03/17

What is meant by qualitative research

A

Subjective/ involves the collection of opinions

245
Q

17/03/17

What is meant by primary/field research

A

Collection of new data

246
Q

17/03/17

What is meant by secondary/desk research

A

Data that already exists/could be internal or external

247
Q

21/03/17

What is meant by bias

A

This is the difference between the truth and an actual answer you get

248
Q

21/03/17

What is a SWOT analysis

A

This can help a business to consider it’s competitive situation and decide on a strategy for the future

249
Q

21/03/17

What are the 4 aspects to a SWOT analysis and explain them

A

Strengths - these are areas you do well/advantages of your organisation
Opportunities - these are external factors that may contribute to your organisation and can build up your strengths
Weaknesses - these are areas to be improved
Threats - these are potential problems/risks caused by external factors that your organisation may face

250
Q

21/03/17

Which are internal factors and which are external factors of a SWOT analysis

A

Strengths and weaknesses are INTERNAL

Opportunities and threats are EXTERNAL

251
Q

22/03/17

Strengths of a SWOT analysis

A

Logical structure
Focuses on strategic issues
Encourages analysis of external environment

252
Q

22/03/17

Limitations of a SWOT analysis

A

Too often lacks focus
Independent
Can quickly become out-of-date

253
Q

22/03/17

Market segmentation, market research and a SWOT analysis need what to be carried out effectively

A

Marketing resources

254
Q

22/03/17

List some marketing resources

A

Marketing budget
Set of objectives
Knowledge of a market
Marketing department, or person responsible for the function

255
Q

22/03/17

Why is marketing strategy needed

A

Strategic planning is a vital element of the marketing process. To be able to develop and use a marketing strategy effectively, the business must have an in-depth knowledge of its market, its competition and its consumers

256
Q

What is meant by a niche market

A

This targets a clear and identifiable segment of the market

257
Q

What is meant by mass marketing

A

This is selling into a market containing many products that are similar

258
Q

Advantages of niche marketing

A 
Less competition
Clear focus
Builds up specialist skills and knowledge
Can often charge a higher price
Profit margins often higher 
Customers tend to be more loyal
259
Q

Disadvantages of niche marketing

A

Lack of economies of scales
Risk of overdependence on a single product/market
Likely to attract competition if successful
Vulnerable to market changes

260
Q

Key features of a mass market

A

Customers form the majority in the market
Customers needs and wants are more general than specific
Can benefit from economies of scales

261
Q

1 advantage and 1 disadvantages of a mass market

A

Advantage - wider target audience

Disadvantage - increased competition

262
Q

What does planned purchases mean

A

When you plan to buy something

263
Q

What does impulse purchases mean

A

When you spontaneously buy something

264
Q

What is meant by customer/market orientation

A

Getting the right product

265
Q

What is meant by product orientation

A

Gets the product right

266
Q

Disadvantages of a product orientated business

A

Could miss opportunities

Sales are limited

267
Q

Explain the difference between a customer and a consumer

A

A customer pays and purchases a product or service. A consumer is the user of the product or service, however, the consumer may not have paid for the product or service

268
Q

03/04/17

What is meant by simple random sampling

A

This is when individuals are randomly selected from a list of the population. This makes sure that every member of the population has an equal chance of selection

269
Q

03/04/17

What is meant by systematic sampling and give an example

A

This is taking the whole population and dividing that number by the amount of samples you want then asking every nth person
E.g. if Morrisons had a 6,000 population and wanted 200 samples. 6000/200=30. So every 30th person would be asked

270
Q

03/04/17

What is meant by quota sampling and give an example

A 
This is when the aim is to obtain a sample that is "representative" of the overall population.  It involves splitting the population into sub-groups according to their distribution in the population
E.g. 15% of Morrisons customers = class C. 20% = class D. The sample will have 15% C and 20% D in them
271
Q

03/04/17

What is meant by convenience sampling and give an example

A

This is using people who are most convenient to question
E.g. doing a supermarket questionnaire in the middle of the day disregards workers and will only sample people who are retired, on holiday or work close by

272
Q

03/04/17

What is meant by cluster sampling and give an example

A

Units in the population can often be found in geographic groups or “clusters”. A random sample of clusters is taken, then all units within the cluster are examined.
E.g. Morrisons might question all customers using checkout lane 4

273
Q

03/04/17

What is meant by stratified sampling and give an example

A

This is choosing a sample from a total number of people and finding the correct value for the % of people of the total amount to be the same % as the sample
E.g. find a stratified sample of 120
Year 7 Year 8 Year 9 Year 10 Year 11 Total
40 30 60 70 40 240
20 15 30 35 20 120
240/120=2 so 1/2 of each original value

Business Studies AS (4 decks)

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