Flashcards
1
Q
Business Model Canvas
8 key aspects
A
- Key activities (production, research and development, marketing, sales and customer service)
- Value proposition (identifies the benefits of a company’s products and services it will deliver to customers)
- Customers (Customer targets)
- Revenue Channels (wholesalers, retailers, distributors)
- Customer Relationships (self-service, automated, communities)
- Key Resources (technology, capital, assets, infrastructure)
- Costs (all costs needed to operate, B2C and B2B)
- Key Partners (suppliers and distribution partners)
2
Q
What is the nature of business activity?
A
- Goal-directed behaviour aimed at
obtaining and utilising scarce
resources to buy, make, trade,
and sell goods and services for a
profit (revenue – cost) - To sell products and services for a profit they
must satisfy customers’ wants and needs - Coordinating, organizing and motivating
people so that they work toward a common
goal
3
Q
Business Environment Sectors
4 sectors (outer sectors and inner sectors!)
A
Organisation < Competitors (strategic groups) < Industry/sector (Porter’s Five Forces) < Macro-environment (PESTEL)
4
Q
PESTEL
What does it stand for?
A
Political
Economical
Social Cultural
Technological
Environmental/legal
5
Q
Political Factors
refer to taxes and government
A
government policies (corporation tax on profits)
taxation
trade regulations
political risks
trade blocks
6
Q
Economic factors
Rates and employment
A
business cycles
unemployment
disposable incomes (incomes after tax and bills)
Interest rates
Exchange rates
7
Q
Social-cultural factors
Lifestyle and incomes
A
demographics
income distribution
lifestyle changes (sleeping, eating etc)
social mobility (movement of individuals/families in social stata)
consumerism
culture and fashion
Attitudes towards work and leisure
8
Q
Technological factors
Research and technology
A
research and development
government spending
technology transfer (movement of technical knowledge from organisation to another e.g internet , smartphones)
rates of obsolescence (new technology replaces old ones can be use in other cases other than technology)
9
Q
Environmental/legal factors
Environmental impacts, health and licensing
A
environmental protection (from government and people)
energy consumption
global warming
waste disposal
re-cycling
competition laws (promoting healthy competition between businesses)
health and safety
employment laws
licensing laws
IPR laws (innovations/inventions are treated as an asset)
10
Q
4 Industry Types
A
- perfect competition - small firms
large number of competing firms
homogenous products
low cost entry and exit.
Going prices set by supply and demand.
e.g agricultural, foreign exchange market
Monopolistic competition - Numerous sellers
large number of competing firms
heterogenous products/different products
low cost entry and exit
coffee shops, taxis, hair salon (zara and uber are examples)
oligopoly - large sellers
small number of competing firms
homogenous and heterogenous
costly entry and exit - capital investment required
e.g airlines, pharmaceuticals, microsoft, film and television.
Monopoly - only one producer/supplier
complete control over prices of products
one dominant film
No close substitutes
Costly entry and exit
11
Q
Porters Five Forces
A
Barriers to entry/threat of new entrants (easy it possible for new companies to start up and create competition)
power of suppliers (Good supply source? , negotiation of prices)
competitor rivalry (market shares and competitors)
power of buyers (switching costs, loyalty) Higher market growth rate - rivalry less - not as many customers to attract
threat of substitutes (other substitute products that have the same features)
12
Q
Factors that affect industry rivalry:
A
equally balanced competitors
slow industry growth
high fixed costs
lack of differentiation/switching costs
high exit barriers
13
Q
stategic management
A
set of decisions and actions that result in the formulation and implementation of plans designed to achieve a company’s objectives.
14
Q
competitive advantage
A
distinctiveness of an organisation’s resources and capabilities/competencies.
15
Q
resources
A
assets that an organisation have or can call upon.
16
Q
competencies
A
ways assets are used/deployed
17
Q
core competency
A
well performed internal activity central to a company’s competitiveness and profitability
e.g brand recognition
18
Q
Threshold resource
A
needed to meet customer minimum requirements - need in order to participate in the industry and compete in the market
Without threshold resources, an entity cannot survive in its industry and markets.
e.g management, money, materials for production
19
Q
Threshold competence
Minimal requirements
A
basic knowledge and skills/essential characteristics
To move beyond minimal performance, additional competencies are required.
20
Q
Distinctive resource
A
unique resources - create competitive advantage
21
Q
Distinctive competency
A
Superior characteristic /quality that distinguishes a company from its competitors
e.g powerful brands - strong brand images
22
Q
Disadvantaged competitive advantage
A
Not Valuable
23
Q
Parity competitive advantage
A
Valuable
Not rare
24
Q
Temporary competitive advantage
A
Valuable
rare
But can be imitated/copied
25
Sustained competitive advantage
Valuable
Rare
Cannot easily be imitated/copied
26
What are the 4 elements of SWOT analysis?
| Internal and external
environmental opportunities(external) - look for ways to promote business growth
environmental threats (external) - negatively impact performance - e.g increased competition
organisational strengths (internal) - e.g unique selling points (competitive advantages)
organisational weaknesses (internal)- e.g lack of resources/ insufficent training - lack in business performance
27
what is an SBU?
| Strategic Business Unit
an independently managed division/unit of a large organisation with its own vision, mission, and objectives.
28
4 elements of the boston consulting group matrix?
Star (high market growth rate and high relative market share)
Question mark (high market growth rate and low relative market share)
Cash Cow (low market growth rate and high relative market share)
Dog (low market growth rate and low relative market share)
29
marketing
Management process - responsible for identifying, anticipating and satisfying customer requirements profitably.
30
Market share
The market share of a company is the percentage of total sales it generates in an industry
if a company sold $100 million in tractors last year domestically, and the total amount of tractors sold in the U.S. was $200 million, the company's U.S. market share for tractors would be 50%.
31
Industry
An industry is a group of businesses that are related in terms of their main activity
e.g entertainment industry, technology industry
32
5 elements of strategy clock
| model to help you understand how companies compete in the marketplace
No frills (lacks differentiation-lowest prices)
Low price (lowest costs and low prices) e.g walmart
Hybrid (unique products higher value but at low prices) e.g spotify, microsoft
Differentiation (high quality/high value but lower premium)
e.g Tesla , Apple, Reebok
Focused Differentiation (designer products - perceived value only)
e.g Gucci, Rolls Royce
33
Ansoff Matrix
Market penetration (existing market and existing product) - expand customer base in the existing market e.g through advertising and product launches.
Market development (New market and existing product) brands such as Adidas and Nike, who continue to expand their global reach and attract new demographics of customers with their existing footwear products
Product development (Existing market and a new product) e.g Taco Bell: adding new items to their value menu
Diversification (New market and new product) e.g Tesco has diversified into areas such as clothing, electronics, financial services, and telecoms
34
Porter's generic strategies
cost leadership - competitive advantage by having the lowest cost of operation in the industry. e.g mcdonalds provides continue valued food at low prices - has a good supply chain.
cost focus - A company with a cost focus strategy is one that does not necessarily offer the lowest prices within the industry, but offers the lowest prices compared to competitors within its target market. e.g Netflix
differentiation leadership- providing customers with something unique, different and distinct from items their competitors (provide high prices to make up for this) e.g BMW and apple
differentiation focus- This approach offers a specialized product to a specific market segment rather than the entire field e.g luxury vehicles
35
Marketing mix 4P's
| 4 P's
the combination of products, pricing, places and promotions it uses to differentiate itself from the competition
product- variety, quality, design, features, brand name, packaging and services.
price - list price, discounts, allowances, payment period, credit terms.
promotion - advertising, personal selling, sales promotion, public relations.
place - channels, coverage, assortments, locations, inventory, transport and logistics.
36
Structures of organisations
| Who manages and what is required to be done?
roles
task relationships - descriptive model of leadership which maintains that most leadership behaviors can be classified as performance maintenance or relationship maintenances
authority- It is the power given to a manager or leader to act and make decisions within designated boundaries and achieve organisational objectives.
37
What do these organisation culture/strcuture have an impact on in business?
cost base (amount of money you put into a business initially)
coordination - the function of management which ensures that different departments and. groups work in sync
levels of motivation
speed of decision making
flexibility (ability to change) e.g short term changes/unexpected changes
38
Legal structure of firms
sole traders
private limited companies
partnerships
public limited companies
39
sole trader
one person business
small funds to set up
send a self assessment tax return every year
pay income tax on profits
pay national insurance
register for VAT if takings more than £82,000
40
partnership
association of individuals
2 to 20 partners
each partner responsible for debt of company
Liability is very important
41
Private limited company
business separate legal identity from owners
each shareholder part of business
shares cannot be traded to general public
company is run by board of directors with a chairman
register on companies house
let HM revenue know when business activities start
for directors:
send self assessment tax return every year
pay tax and national insurance through PAYE if paid a salary by company
42
Public limited company
similar to ltd
can sell shares on stock exchange to public
fluctuating share prices
separation of ownership and control
public access to annual accounts
every financial year: put together statuary accounts, send companies house an annual return, send HMRC a company tax return. Must register for VAT if takings expected to be more than £82, 000 a year.
43
What are the 5 key design questions for a company/business?
work specialisation - to what degree should tasks be subdivided into separate jobs?
formalisation - to what degree will there be rules and regulations to direct employees and managers?
chain of command- to whom do individuals and groups report?
span of control -how many employees does a manager direct?
degree of centralisation - to what extent decisions are made centrally?
44
How many employees and managers are at narrow span of control?
4096 employees
managers (levels 1-6) = 1,365
45
How many employees and managers are at wider span of control?
4096 employees
managers (levels 1-4) = 585
46
Describe the scientific management mode of organisation?
- Aim to organise production efficiently
- Efficiency, standardisation and discipline
- Division between management and workers
- Scientific methods (time and motion studies) to determine 'one best way of doing a job'
47
What is the 'fordism' mode of organisation? (manufacturing industry)
- application of scientific management principles
- divide production into simple repetitive steps
- installed single purpose machine tools
- introduced assembly line
- used monetary rewards to motivate people
This was a quicker method for production as assembly lines allowed more production faster
48
What are the positives of the rational goal models?
- provides managerial control
- supports mass production/service
- increased efficiency and productivity
- greater standardisation, less error
- employees require less straining
standardisation - that its products and the way they are marketed are largely the same everywhere
49
What are the criticisms of the rational goal models?
can be rigid and inflexible
dehumanises the worker
jobs become monotonous
restricts individual initiative and enterprise - cogs in a machine
50
What is the organic design structure?
| Relates to innovation strategies and turbulent/uncertain environments.
flexible and responsive to change
cross functional teams (people with different expertise working together)
Decentralised decision making (distributed through large groups)
Law of specialisation - products which meet needs of customers
Extensive communication
Knowledge sharing
51
What is the mechanistic design structure?
| Tight control and high formalisation
## Footnote
Good for low cost strategy and stable and predictable environment
(rigid and formal)
standardisation with tight control
centralised decision making
narrow spans of control
Extensive work specialisation - separating activities into individual tasks
High formalisation (job descriptions, work processes and organisational rules)
Minimal discretion (freedom)
52
What is the combined design structure?
| Good for hybrid strategy and mixed environments
(organic and mechanistic)
Mix of loose and tight properties
tight control over current activities
looser controls for new undertakings
53
Culture
The way you think act and interact
54
Organisational Culture
is the set of values, beliefs, attitudes, systems, and rules that outline and influence employee behavior within an organization
55
What are the formal organisations of a company?
Structure
Hierarchy
Tasks and role definitions
Performance measures
Coordination and control
Formal rules and procedures
56
What are the informal organisations of a company?
Routines
Norms and values - something that is usual, typical, standard, or expected
Group/inter group behaviour
Coalitions, alliances and power
Organisational culture
57
What are the 5 steps in the process of developing organisational culture?
* Shared values (share common attitudes of employees and managers - link an organisation together)
* Shared beliefs (beliefs that are shared by people across all business)
* Norms (shared expectations - dress code and etiquettes)
* Individual and group behaviour
* Reinforcing outcomes (communicate core values and expected behaviour)
58
Examples of responsibility actions to take for business
- Inputs and resource supplies (fair to producers and suppliers - purchasing raw materials from sustainable suppliers and comply with minimum employee standards before signing contracts)
- workforce (Diversity, equality, health and safety, work life balance, fairly pay, holidays , bonuses and pension schemes)
- operations - reducing waste of materials and energy used in production and transportation. Waste reducing programmes.
- product and service - responsible adverts, child protection, harmful ingredients listed, clean and easy to recycle packages.
59
Corporate social responsibility
companies can and should make a positive contribution to society
CSR is the practice of managing the social, environmental and economic impacts of the company being responsive to 'stakeholders' (who are affected by a business and behaving according to a set of values).
60
What is a 'stakeholder'?
An individual or a group that's impacted by the outcomes of a business. These stakeholders can affect or be affected by businesses.
61
Major corporate stakeholders
* Investors - follow proper accounting procedures and provide financial performance information to shareholders.
* Suppliers
* Customers - treat fairly and honest
* Local communities
* Employees - Treat fairly
Respect dignity and basic human needs
62
Examples of philanthropy
- donating to charities/products
- creating charitable programmes - free health programmes and free equipment for schools etc
- volunteering - members of company volunteering for local communities
63
What is 'enlightened self interest' philanthropy?
Philanthropy associated with improving public image and brand integrity and access to government agencies. Works as a form of insurance and helps remove bad images of a company.
64
Approaches to social responsibility
LOWEST - obstructionist stance - doing as little as possible/deny and cover up violations. Blocks out social responsibilities. Obstructive companies are known to pollute, deceive customers, and even exploit their own employees.
Defensive stance - only minimal legal requirements in commitments - still focused on profits
Accomodative stance - If asked to do so, exceed legal minimums in its commitments to groups.
Proactive stance - company actively seeks opportunities to contribute to the well-being of groups and individuals in its social environment.
65
Social responsibility
overall way in which a business attempts to balance its commitments to the relevant groups and individuals in its social environment - socially responsible for stakeholders in businesss
66
Examples of malpractice
- rewarding senior managers who have damaged business
- banks promoting and selling unnecessary insurance
- retailers sourcing goods from factories that discard workers' general well being/employee underage workers.
- Bribery or blackmail
- Damage to the environment
- Fraud
- Not complying with health and safety procedures
- failure to comply with a legal obligation;
- criminal activity;
67
Advantages of CSR:
Economic (brand loyalty, competitive advantage, bigger profit margins)
Political (Increased credibility (trust) and lobbying power)
Social (Consumer loyalty, improved reputation and image)
Operational (helps to acquire accreditation (recognition for an achievement/act))
Health and safety (Produce safer products)
Sustainability (build a sustainable business with benefits of environmental protection)
Stakeholders (improved stakeholder relationships)
68
Why does motivation matter for businesses?
higher levels of commitment and creativity
more positive attitudes and discretionary effort (left to individual choice)
higher levels of performance and outcomes
less absences and turnover of staff
69
What are the current effects of low motivation in businesses?
people are unhappy with the way they are managed
only 3 in 10 employees are engaged with their work
only 4 in 10 are satisfied with their opportunities to use their abilities
2 in 5 employees get feedback on how they are performing
almost half of the employees are looking for another job
70
What are the 3 aspects of maslow's hierarchy of needs?
Self-actualisation
Esteem belongingness
Security physiological
71
Explain the key essentials of MHON to ensure the factors are achieved?
- creative and challenging work
- participation in decision making
- job flexibility and autonomy (freedom)
- Responsibility of an important job
- promotion to a higher status job
- praise and recognition from boss
- friendly co-workers
- interaction with customers
- pleasant supervisor
- safe working conditions
- job security
- base compensation and benefits
- rest and refreshment breaks
- physical comfort on the job
- reasonable work hours
72
Extrinsic Motivation
people engage in an activity in order to gain a reward such as a bonus or to avoid punishment. This source is external to the activity.
e.g assembly production line
73
Intrinsic Motivation
Activity provides it's own internal reward. Within activity and you relation to it. E.g drawing, reading a good book, doing something you love.
74
Herzberg's Two Factor Theory
Poor hygiene factors - decrease employee job satisfaction
Motivating factors - increase employee job satisfaction
75
What are the poor hygiene factors of H's Two factor theory?
working conditions
co-worker relationships
policies and rules
supervisor quality
base wage and salary
76
What are the motivating factors of H's Two factor theory?
achievement
recognition
responsibility
work itself
advancement
personal growth
77
Expectancy Theory
takes into account that each person is motivated differently
78
Motivational Force
| provide equation in relation to expectancy
expectancy x instrumentality x valence
79
Effort performance expectancy
Can i achieve the desired level task of performance?
80
Performance outcome expectancy
What outcomes will i receive as a result of this behaviour?
81
Valence
How highly do i value these outcomes?
82
How to maximise expectancy?
make the person feel competent and capable of achieving the desired performance level.
- select workers with ability
- train workers to use ability
- support work efforts
- clarify performance goals
83
How to maximise Instrumentality?
- clarify psychological contracts
- communicate performance-outcome possibilities
- demonstrate what rewards are contingent on performance
84
How to maximise Valence?
- identify individual needs
- adjust rewards to match these needs
85
Job enrichment
increasing job satisfaction by adding one or more motivating factors to job activities
86
Job redesign
increasing job satisfaction by designing a more satisfactory fit between workers and their jobs
87
Invention
creation of something new
introduce a new faculty in people's lives
e.g light bulb
88
Innovation
introduce new characteristics to a product/field
improve a current invention by adding to it
e.g the smartphone
89
Innovation definition
The process which generates value from the creation, development and implementation of new ideas, technologies, products and services.
90
Sources for innovation?
Knowledge pushes - R and D processes
Need Pull - Follow a need in the market
Important at mature stages of life cycle
Shocks to the system- financial crashes (rise of fintech and crypto currencies) and climate changes (clean energy production and business models around clean energy)
Serendipity - mistakes that turned out to be important innovations
91
Leadership goals
- influence a group towards the achievement of goals
- motivate people to achieve objectives
- maintain and develop co-operative relationships
- develop and nurture the skills and confidence of followers.
92
Leadership
process of influencing others to understand and agree about what needs to be done and how to do it and the process of facilitating individual and collective efforts to accomplish shared objectives.
93
Toxic leaders
cold fish - ends justifies means (any decision/action os justifiable in terms of results desired)
snake - world serves me in the endeavour to satisfy my personal need like greed status and power
glory seeker - personal glory and public visibility at any cost regardless of whether i have made any real and meaningful contribution
puppet master - absolute control over everything and anyone under all circumstances.
94
Personality trait theory
intellectual ability
self confidence
verbal ability
determination
integrity
sociability
95
What is leadership effectiveness?
degree of influence on followers
group/organisation performance
job satisfaction of followers
96
limitations of the trait theory
ordinary people can turn into great leaders
assumes great leaders are born due to traits - can be learned through life
what comes first? Traits or good leaders? Do all people with these traits become good leaders?
Do all great leaders have these traits?
Results were too inconsistent and not practical
97
Leadership styles
Bureaucratic
Autocratic
Democratic
Laisez-Faire
People-orientated
Task orientated
Transformational
98
Task orientated leaders
giving structure to work context
coordinating work tasks
defining role responsibilities
scheduling work activities
emphasising deadlines
99
People orientated leaders
leader shows concern for people
adopts a friendly supportive manner
listens to subordinate concerns
consults and builds camaraderie (trust and friendship)
fosters liking with subordinates (cooperation)
100
Common habits of leadership
1. love of what you do
2. energy and drive
3. articulate a compelling vision
4. bias for action
5. demonstrate courage
6. value relationships
7. personify integrity
8. manage their emotions
9. praise loudly and blame softly
101
programmed decision
repetitive
handled by routine approaches
102
non-programmed decisions
customised in order to solve unique or non-recurring problems
103
Rational model for decision making
Define the problem
Identify the decision criteria
weight the criteria
develop the alternative courses
evaluate the alternatives
select the best alternative
104
problems with rational model for decision making
ambigous information
uncertainty and risk
time constraints and information costs
105
Behavioural model of decision making
bounded rationality (individuals make decisions by constructing simplified models that extract essential features)
managers satisfice and not optimise (individuals search for and choose acceptable/satisfactory responses to problems and opportunities)
managers rely on heuristics (intuition and rules of thumb/shortcuts)
106
Anchoring bias
tendency to rely too heavily on the first piece of information offered when making decisions
e.g pricing strategy of £9.99
Package deal/membership deals
107
Confirmation Bias
the tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong
108
Representative Bias
tendency to generalise inappropriately from a small sample or a single event/episode
109
Escalating a commitment
tendency to commit additional resources to a project even if evidence shows that the project is failing.
110
advantages of group decision making
choices less likely to fall victim to individual bias
able to draw on combined skills of group members
improve ability to generate feasible alternatives
111
Potential disadvantages of group decisions
can take longer - decision by commitee
can be difficult to reach agreement (different preferences)
can be undermined by different kinds of group biases
112
Cognitive Biases
Anchoring Bias - The tendency to rely too heavily on the first piece of information offered when making decisions
Confirmation bias. The tendency to base decisions on strong prior beliefs even if evidence shows that those beliefs are wrong
Representative bias. The tendency to generalise inappropriately from a small sample or single event or episode
Escalating commitment. The tendency to commit additional resources to a project even if evidence shows that the project is failing
113
What are the 3 levels of business strategy?
Corporate level strategy- Determines which of the company's businesses will continue to operate and how resources are allocated
Business level strategy - Requirements of each business
Functional level strategy- looks at each functional area and how it needs to perform to meet overall strategy. E.g looking to expand the business - need to focus on marketing strategies.
114
What are group biases?
| Give a reasoning and limitation for this?
Faulty and biased decision making that occurs in groups who strive for agreement
Reasoning: the psychological needs for desire of harmony and conformity, and avoid conflict
Limitation: may result in irrational decision-making
115
What are the techniques to counteract decision bias?
Devils advocacy - someone acts as the devil's advocate. Is against the idea/preferred alternative in order to uncover flaws/mistakes.
Dialetical enquiry - Two groups of managers assigned problem, evaluate each. Come together in a debate and critique each other's alternatives. Top managers critique ideas to uncover potential issues.
Promote diversity - genders, different ethnicities and backgrounds. Wider set of alternatives, less prone to group think.
116
Cost-volume-profit analysis
explores the relationship between revenues, costs, sales and profits.
117
Variable costs
Vary with changes in activity i.e. they rise as production increases and fall as production decreases
production suppliers, delivery costs, packaging supplys
118
Fixed costs
Do not change over wide ranges of activity, they are fixed. These have to be paid irrespective of whether production falls or increases
Insurance, leased equipment, Rent, etc.
119
How is the fixed cost affected by business units?
The more units produced, the greater the fixed cost is distributed across the units (lower cost per unit).
120
How are variable costs affected by activity and increase in volume of units?
Total variable costs increase with activity, but the average cost per unit declines with the increase in volume (i.e. economies of scale)
121
Profits
the difference between revenue and costs
122
revenue
units sold x selling price
123
net profit
revenue – (fixed costs + variable costs)
124
If we price our goods at £25
If we only manage to sell 10,000 units
what is the net profit?
Fixed costs and variable costs = £300,000
10, 000 x £25 = £250 000 = revenue
£250,000 - £300,000 = -£50,000 net profit
125
Selling price is £25 per unit
Variable cost is £10 per unit
Fixed costs are £200,000
How many units do we have to sell to break-even?
0 = (Units X 25) – (200,000 + (Units X 10))= 15 units – 200,000
Units= 200,000/15 = 13,333
126
Selling price is £25 per unit
Variable cost is £10 per unit
Fixed costs are £200,000
How many units do we have to sell to make a profit of £300,000?
300,000 = (Units X 25) – (200,000 + Units X 10)
300,000 = 15 X Units – 200,000
Units= 33,333
127
Variable cost is £10 per unit
Fixed costs are £200,000
Selling price to be charged to show profit of £150,000 on sales of 25,000 units?
Profit = (Units X Price) – (Fixed Cost + Variable Cost)
£150,000 = 25,000 x Price – (£200,000 + (£10 x 25,000 ))
£150,000 = 25,000 x Price – £450,000
£600,000 = 25,000 x Price
Price = £24 per unit
128
What is a market segment?
People who are grouped together for marketing purposes. Satisfy homogenous needs of a small group of customers.
taking a broad market and breaking it into various groups
129
Situational Leadership
adapting your leadership style to each unique situation or task to meet the needs of the team or team members
130
Trait-based leadership
successful leadership arises from certain inborn personality traits and characteristics
131
Transactional Leadership
Transactional leadership is a type of leadership style that focuses on the exchange of skills, knowledge, resources, or effort between leaders and their subordinates
132
Charismatic Leadership
A type of leadership that is defined by the positive personal qualities of the leader. Use persuasion an influence.
133
What are the 4 factors of production?
land - natural resources used to create a good or service
labor - Labor is the effort that people contribute to the production of goods and services
capital - capital goods, or man-made resources, such as tools and infrastructure, used in the production of a good or service
entrepreneurship - creation or extraction of economic value
134
How to build/gain competitive advantage?
Cost: Provide offerings at the lowest price. Differentiation: Provide offerings that are superior in quality, service, or features.
Specialization: Provide offerings narrowly tailored to a focused market
135
Divisional Structure of a firm
Company is separated into divisions
Each divison has teams dedicated to a specific region or product
136
Matrix Structure of a firm
A matrix organization is defined as one in which there is dual or multiple managerial accountability and responsibility - good for multiple lines of work and rapid management
137
Functional Structure of a firm
organizes a company into different departments based on areas of expertise, grouping employees by specialty, skill or related roles.
138
Regional Structure of a firm
have offices or units in different regions or geographical areas.
139
General Environment of a business
The general environment includes the political, economic, social, technological, environmental and legal factors that affect all organisations.
140
Micro-environement of a business
micro-environment is also referred to as its competitive environment.
141
organisational citizenship behaviour
describe all the positive and constructive employee actions and behaviors that aren't part of their formal job description.
142
Theory X
people dislike work, have little ambition, and are unwilling to take responsibility
143
equity theory
is a theory of motivation that suggests that employee motivation at work is driven largely by their sense of fairness
144
# 1.
Goal-setting theory
1. Challenging goals lead to higher levels of performance than easy goals.
2. Specific goals lead to higher levels of performance than vague goals.
3. Participation in goal setting can improve commitment to those goals.
4. Knowledge of results of past performance is necessary to motivation.
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