Introduction to B&M, Types of Organisations, Organisation Objectives, Stakeholders Flashcards
role of:
operation management
marketing department
finance and accounts department
HR department
operation management: manufacturing of product, delivery. and execution of service
marketing department: developing customer interest and awareness and monitoring performance
finance and accounts department: manage and report economic sustainability
HR department: organising employees to achieve objectives and determine appropriate culture
enterpreneurship vs. intrapreneurship
enterpreneurship
- uses skills to create business
- has freedom
- has less resources
intrapreneurship
- uses skills to innovate for someone’s else business
- needs to ask managers
- has more resources
reasons for setting up a business
- becoming artistically and financialy independent
- persue a passion
- increased control over their future
- satisfying a market opportunity
- self-discovery by trying something new
problems of start-ups
- lack of finance
- lack ability to prepare and monitor financial accounts, marketing, etc.
- incorrect pricing
- bias, inaccurate market research
elements of a business plan
- aim
- existing and potential competition
- amount of funding, with a time line
- finance that is needed under different scenarios of external factors
- time line of implementation and action
- marketing plan with sales forecast
- projected revenue and profit; cash flow
key features of different types of business
private vs. public sectors
The private sector focuses solely on profit maximisation
The public sector tries to provide a service to consumers whatever the cost
factors affecting which type of organisation is appropriate
- the objectives in terms of growth, profit, vision and mission
- the degree of control
- the degree of transparency (public vs. private)
- competing either in national or global markets
- speed and degree of flexibility in decision-making
definition of co-operative
an organisation that is owned by the people who use it, and managed for their best interests
mission vs. vision statement
mission statement: the reason of existence
vision statement: where the company sees itself in the future
benefits of mission and vision statements
- gives purpose to stakeholders (motivation)
- clear goal
typicall business objectives
objective: a step to help achieve the aim (their vision)
typical:
- surivial or break-even
- cost minimisation
- growth
- profit maximisation
definitio of CSR
a continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community
quadruple bottom line
environmental, econiomic, cultural and spiritual impacts of business activity
limitations of CSR and enviromental audits
they take up valuable time and resources, adding to the reporting and administrative burden of businesses, especially start-ups
this could force them to increase prices to consumers to recoup these epxenses
HOWEVER, lets no forget the true cost of damanging the enviromental and social structures, which can be minimised by taking up some of their “valuable” time to do something ethcial…
Ansoff matrix for different growth strategies
market penetration – aiming to increase market share, least risky
market development – targeting existing products into new markets (e.g. new geographics), risky
product development – developing new products to existing markets (good when strong brand loyalty), risky
diversification – new product and new market, most risky
