Key Terms Flashcards
Span of control
The number of employees someone has direct control of and who they are responsible for
Wide span of control
Many subordinates
Narrow span of control
Few subordinates
Benefits of wide span of control
More ideas being shared
Cheaper to operate as there are less managers
Disadvantages of a wide span of control
Communication more difficult and time consuming
Fewer promotion opportunities
Benefits of narrow span of control
Staff supported more effectively
More promotion opportunities
Disadvantages of a narrow span of control
Expensive, staff may feel they have no freedom
Chain of command
Refers to the lines of authority within a business
Organisational design
Refers to how people and management are organised in a business
Matrix structures
Exist where individuals work across teams and projects as well as within their own department or function
Barrier to entry
Factors that make it hard for new forms to break into an existing market (e.g. Strong brand loyalty to the current market leaders)
E- commerce
Literally, electronic commence- carried out online
Impulse purchasing
Buying in an unplanned way ( e.g. Going to the shops for a paper but buying a mars bar and a Coke too)
Long tail
The huge number of tiny businesses appealing to minority tastes that can find a profitable existence online because they can target the whole planet, not just the local area
Opportunity cost
The cost of missing out on the next best alternative when making decisions
Wholesalers
The middleman between between the producer and retailers, who breaks bulk down from container lofty- loads into manageable parcels
Flexible working
Working arrangements were there are a variety of options offered to employees in terms of working time, location and the the pattern of working.
Multiskilling
Where staff are allowed to carry out a variety of task rather than specialise
Enables greater use of Jon rotation
Outsourcing
Delegating one or more business processes to an external provider, who then owns, manages and administers the selected processes to an agreed standard
Off shoring
The work is done over seas
Outsourcing
Someone else does the work for us
Employee representation
Arises when employees are part of a formal structure for involving them in the decision-making process of a business
Main role of trade unions
Protest and improve the real incomes of their members
Provide or improve job security
Protect workers again unfair dismissal
Lobby for better working decision
Pricing method?
The method used to calculate the actual price set
Pricing strategies
Adopted over the medium to long term to achieve marketing objectives, have a significant impact on marketing strategy
Pricing tactics
Adopted in the short term to suit particular times
Distribution
Is about availability, ( how to get the product to the right places for customers to make their purchases)
Loss leader
A product prominently displayed, advertised, and priced below the normal price and even below cost to the seller
Resources
The items the business use to produce and sell their product or service
Resource management
Requires planning and control at every stage of the supply chain from purchasing to customer delivery
Needed To make sure the business uses the resources efficiently
Long tail?
The huge number of tiny businesses appealing to minority tastes that can find a profitable existence online because they can target the whole planet, not just the local area
Opportunity cost?
The cost of missing out on the next best alternative when making decisions
Wholesaler?
The middleman between the producer and retailers, who breaks bulk down from container Lorry-loads into manageable parcels
