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Management Activities Flashcards

1
Q

What are three main management activities?

A

Planning
Organising
Controlling

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2
Q

Explain planning with an example

A

This is where a manager:
Sets goals (objectives) for the business to achieve in the future and then:
Comes up with strategies on how the business can achieve those goals
Ex: Objective – increase business sales by 10% in the next year.
Strategy – increase advertising and reduce price of product.

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3
Q

What are the steps involved in planning?

A

Develop a SWOT Analysis
Set Objectives
Devise Strategies
Implement the Plan

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4
Q

What are strength in a SWOT analysis with examples

A

(Internal)- Something the business owns or does well that gives it a competitive advantage
Ex: Excellent employees, Assets

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5
Q

Explain Weaknesses in a SWOT analysis with an example

A

(Internal)- Something that the business does badly or is lacking altogether that puts it at a competitive disadvantage
Ex: Lack of money

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6
Q

Explain threats in a SWOT analysis with an example

A

(External)- Something in the outside world that can prevent the business from succeeding
Ex: Competition from outside companies

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7
Q

Explain opportunities in a SWOT analysis with an example

A

(External)- Something in the outside world that the business can avail of to make money or benefit from
Ex: New countries joining the EU (market expansion)

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8
Q

What does SWOT stand for

A

Strengths, weaknesses, opportunities and threats

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9
Q

What are objectives with example

A

The business should use the SWOT analysis to set objectives for the company.
Objectives are the goals the business wants to achieve.
Ex: Aer Lingus had ryanair as major threat so they set the objective to become low fares airline

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10
Q

What does devising strategies mean with an example?

A

The business must come up with strategies to achieve these goals.
Strategies are plans of action to achieve a goal.
Ex: Aer Lingus had a strategy of making 2000 employees redundant to cut costs

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11
Q

Name three types of strategy

A

Low cost leadership
Differentiation strategy
Niche strategy

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12
Q

Explain a niche strategy with an example

A

This strategy spots a group of individuals with specific needs in the market and makes a product to satisfy those needs.
Example: Ferrari Cars

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13
Q

Explain a low cost leadership strategy with an example

A

The aim is to keep costs low and sell the products as cheaply as possible.
Example: Ryanair

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14
Q

Explain a differentiation strategy with an example

A

The aim is to make products different from competitors and make them stand out.
Example: Abercrombie & Fitch

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15
Q

Explain implementing the plan with an example

A

The plan put into action
The manager must break the jobs down into manageable jobs and assign roles to employees.
The manager communicates the plan to employees and ensures they understand what they must do.
Ex: Aer Lingus asked employees to volunteer for redundancy

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16
Q

Name four types of plans

A

Mission statement
Strategic plan
Tactical plan
Contingency plan

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17
Q

Explain the mission statement with an example

A

The mission statement outlines the direction of the business and their overall objectives.
Example: ‘We provide our customers with the best value for money through a convenient shopping experience.’

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18
Q

What is a strategic plan?

A

A long term plan of action for the business as a whole

It takes the business’ mission statement and breaks it up into major plans of action for the business to work on

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19
Q

What is a tactical plan?

A

A short-term plan for the business
Usually applies to a particular department of the business
Breaks up the strategic plan into smaller plans of action
Time Span: 1 Year

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20
Q

What is a contingency plan? with an example

A

A back up plan to help the business cope with an emergency or an unforeseen event
The aim is to limit damage and prevent disruptions to the business ex: Business have contingency plans to deal with the break up of the eurozone

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21
Q

What are the advantages to planning?

A 
Guides the business to success
Helps avoid future problem
Eliminates the business’s weakness
Helps secure capital (investment/money)
Motivates employees and managers
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22
Q

What are the characteristics of a good and effective plan?

A 
Specific
Measurable
Agreed 
Realistic
Timed
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23
Q

What is organising and how is it done?

A

This is the structuring of the business in the best way possible to allow the business achieves its goals.
Resources of the business are arranged in the most suitable way
Work is split into jobs and these jobs are assigned to specific departments (organisational structures)

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24
Q

Name four types of organisational structures

A

Functional Organisational Structure
Product Organisational Structure
Geographical Organisational Structures
Matrix Organisational Structure

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25
What is a functional organisational structure and give some advantages and disadvantages
``` The business is split up into different jobs or functions Advan: Greater Specialisation Accountability Clarity of Roles Disadvan: Can Lead to Isolation Lack of Co-Ordination Between Departments ```
26
What is a product organisational structure and give some advantages and disadvantages
``` The business is split up into departments based on products made Advan: Focus on the Customer Healthy Competition Between Departments Incentive to Keep Costs to a Minimum Disadvan: Duplication of Departments Brand Cannibalisation ```
27
What is a geographical organisational structure and give some advantages and disadvantages
``` Business departments are based on geographical areas they are operating in Advan: Serves local needs better Healthy Competition Between Departments Incentive to Keep Costs to a Minimum Disadvan: Duplication of Departments Conflict Between Managers ```
28
What is a matrix organisational structure and give some advantages and disadvantages
``` Employees placed on temporary project teams depending on the projects being carried out at any given time. Advan: Improves Co-Ordination Better Ideas Develops Employees Disadvan: Employees must report to two bosses Increased costs Slow Decision Making ```
29
Explain chain of command
This is the unbroken line of authority that links all individuals in an organisation and specifies who reports to who. also shows official channel of communication
30
What is Delayering?
Is when some layers of management are taken out of the company. If there are too many layers, the sending of information may be slow.
31
What is Restructuring?
This is the process changing the organisation of the business to make it more efficient.
32
What is the span of control and the two types
The number of employees that report directly to a manager. It can be: Wide: a manager can supervise a lot of employees effectively at the same time Narrow: a manager can only supervise a few employees effectively at the same time
33
What does the span of control depend on?
``` The manager’s experience and ability The employee’s experience and ability The type of work to be done Location of Employees Outside pressure on the manager ```
34
What is line organisation?
Line departments are those that are directly responsible for making and selling the business’s products e.g Marketing, Production
35
What is staff organisation?
These are the departments who provide expert advice to the line departments e.g I.T Department, Legal Department
36
Give four advantages of organising
Helps to solve problems quickly Improves efficiency Helps the business cope with change Minimises waste
37
Explain controlling?
This involves the manager making sure the business stays on target to achieve the objectives that were set out during planning.
38
What are the steps with controlling?
Set goals Measure actual performance regularly Identify any deviations and investigate them Take corrective action to stay on target
39
What are the four main areas of controlling
Stock Control Quality Control Credit Control Financial Control
40
Explain Stock Control
Aim: to ensure the business has exactly the right amount of stock in the organisation at all times. Enough to meet the demands of customers Too much stock- out-of-date or going off Too little stock - company run out (stock out)
41
Explain Just-In-Time
Form of Stock control. Aims to keep the minimum amount of stock possible in the business while at the same time never running out of stock. Buy from supplier only when materials are needed. They are used straight away
42
Give and explain advantages of stock control
Does not carry too much stock- lower insurance premium Easier to spot and eradicate theft Always have right amount of stock. Customer satisfaction and increases sales and reputation. Saves money and less waste- stock deterioration an obsolescence
43
Explain quality control and give three forms
Ensures the quality of the business’s products reaches a high standard and meets customers expectations. Forms: Physical Inspection, Quality Circles, ISO 9000 Awards
44
Explain one by one inspection
Trained inspectors physically examines every single product before they leave the factory. Only the products that meet the standard leave the factory to be sold. Example: Louis Vuitton
45
Explain sampling inspection
A batch of the product is made A random sample is picked by the inspector for inspection If sample passes, inspector passes the whole batch If sample fails, inspector fails the whole batch
46
Explain what the ISO 9000 is
Internationally recognised quality award Apply to the ISO (International Standards Organisation) for the award. Independent team of inspectors review the product’s quality standard
47
Explain Quality Circles
Small group of employees meet regularly to spot quality problems in the factory and try to solve them. Employees are best placed to know the business's quality problems They meet raise the question and discuss it. If solution is approved by manager employees help implement it
48
Explain and give the advantages of quality control
Increased sales- Quality is of highest standard. Customers are happy and continue to buy product. Lower costs- no waste of money on repairing faulty goods of giving refunds Marketing- quality mark ISO 9000 reassures customer it is a good quality, trusted brand
49
Explain Credit control
Ensure the business’s customers (debtors) who buy goods on credit pay their bills on time. Aims to eliminate bad debts (customers not paying their bills)
50
Name the steps in credit control
Overall limit Credit checks Prompt invoices and offer discounts Collection procedures
51
Explain overall limit as a step in credit control
Max amount of credit they will give to customer | never loses more than this amount
52
Explain credit checks as a step in credit control
Vets each customer to see if they can be trusted with credit Credit check can be run through Central Credit Register Business can ask for interview/references from bank or other business
53
Explain Prompt invoices and offer discounts as a step in credit control
Send invoice out immediately- deadline of payment | Should offer discounts for early payment
54
Explain Collection procedure as a step in credit control
Must have procedure for collecting money of customers who do not pay By telephone or visit- insist on immediate payment May add interest on outstanding bills Can take case to court
55
Explain and give the advantages of credit control
Ensures the business receives the money owed to them on time- not go bankrupt Reduces costs - not losing money on bad debts Helps the business choose the right customers to offer credit to- ensures increased sale with credit available
56
Explain Financial Control and name three methods
Aims to ensure the business is profitable and always has enough money to pay its bills. Methods - Budgeting , Compare Cash Flow Forecasts, Ratio Analysis
57
Explain Budgeting as a method of financial control
Each department has budget detailing amount of money allowed to spend each year. Must not go over this amount
58
Explain Cash flow as a method of financial control
Manager compares cash flow with cash flow forecast | May take corrective action is necessary- ensure enough cash to pay bills
59
Explain Ratio analysis as a method of financial control
Comparing business's actual ratios with budgeted ratios see if it's on or off target. Steps to get back on target
60
Name four advantages to controlling
Ensures that the business achieves its objectives Reduces the business's costs Improves cash flow Increases Sales and Profits
61
What is a SWOT analysis
This is where the manager critically examines the business by identifying those things that is good and bad at in the business. It also examines the competitive external environment
62
Example of a SWOT analysis with Ryanair
Strengths- Excellent CEO innovative ideas to improve airline and famous brand name- stands for low cost flights Weaknesses- Industrial relations problems, reputation of poor customer service to passengers Opportunities- Transatlantic service will increase passenger numbers, lower costs of oil Threats- Stiff competition (easyjet), Increasing government passenger taxes
63
Give an example of an airlines mission statement, strategic plan and tactical plan
"To become the biggest airline in the world" To operate 20% of flights from Europe to the US within the next 5 years To launch Dublin-New York flights in the next 6 months
64
Explain planning guides the business to success as an advantage of planning
Manager can focus on the future of the business. Sets out objectives to be achieved and strategies by which they will be achieved. Guides manager to success
65
Explain planning helps avoid future problems as an advantage of planning
Manager can anticipate problems facing the business. Solving problems in advance of them happening avoids business failure.
66
Explain makes the business stronger as an advantage of planning
SWOT analysis identifies the business's weaknesses. Steps can be taken to eliminate these and become stronger and ore successful. Ex: Cash flow forecast allows manager to identify over spending and take steps to eliminate it.
67
Explain planning helps secure capital as an advantage of planning
When a business wants to raise finance, it must prove capable of repaying it. A business plan is used to convince investor to provide the funding showing them the business idea is a sound one.
68
Explain planning motivates employees and managers as an advantage of planning
Everyone has a target to aim for. When target is achieved there is a sense of satisfaction providing drive and inspiration
69
Explain the advantages of a functional organisational structure
Specialisation- departments focus on one job. Become expert at it. Jobs are done quickly to high standard Accountability- Director of department is responsible for all that happens in it. Easy to spot source of error Clarity- Everyone knows who reports to whom - speed up communication
70
Explain the disadvantages of a functional organisational structure
Isolation- People in departments may know little about each other and what departments do Co-ordination- Difficult to get departments to pull together in same direction
71
Explain the disadvantages of a product organisational structure
Duplication- Number of same departments. Higher wasteful costs Brand cannibalisation- May be stealing of customers from other company products
72
Explain the advantages of a product organisational structure
Focus on customer- Make one product only. Concentrate on giving best product to consumers Competition- Between departments to be most successful. All departments strive to be the best Lower costs- Greater incentive for each department to keep it's costs to a minimum
73
Explain the advantages of a geographical organisational structure
Serve local needs better- Know what their customers want and need. Higher sales Competition- Between departments to be most successful. All departments strive to be the best Lower costs- Greater incentive for each department to keep it's costs to a minimum
74
Explain the disadvantages of a geographical organisational structure
Duplication- Number of same departments. Higher wasteful costs Conflict- Conflict arise between senior managers- who knows best for the local business
75
Explain the advantages of a matrix organisational structure
Better coordination- Employees mixing helps the respect other roles in the business. Departments pulling together to make business a success Better ideas- Brainstorming, Different enterprise and ideas to build on. Team produces better solutions Develops employees- Exposes them to practice more experienced workers work. Learn more about job. Quicker than learning alone
76
Explain the disadvantages of a matrix organisational structure
Two bosses- Functional boss and project boss. When both give conflicting orders can cause confusion Increased costs- Train managers to become project managers. Extra secretiarial/admin costs Slow decision making- Consulting everyone takes time. Slows down process of decision making
77
Explain organising helps solve problems quickly as an advantage of organising
Clear organisational structure ensure employees know exactly what to do and who to go to with an issue. Problems solved quickly
78
Explain organising improves efficiency as an advantage of organising
Employees specialise in one job and become better and faster at it. Better quality of work
79
Explain organising helps the business cope with change as an advantage of organising
Matrix organisational structure sets up project teams alongside regular functional structure. Teams are set up quickly to solve urgent issues facing business while normal work continues.
80
Explain organising minimises waste as an advantage of organising
Proper assignments of jobs avoids overlapping work. Makes best possible use of resources. Avoids work duplication
81
Explain Controlling makes sure the business achieves its objectives as an advantage of controlling
Checking up on the progress of business to ensure it is on target to achieve goals. Steps can be taken to correct anything off target
82
Explain Controlling reduces business's costs as an advantage of controlling
Great control programmes ex: ISO9000 Ensures products are of excellent quality. No wasting money on faulty products/repairs
83
Explain Controlling the business improves it's cash flow as an advantage of controlling
Debtors pay on time with an effective credit control policy. Business cash flow improves as they receive cash in plenty of time of needing to pay bills.
84
Explain Controlling increases a business sales and profits as an advantage of controlling
Quality control ensure top quality products. Stock control means there is always stock to be bought by customers. The reputation of business is boosted with availability of excellent products. - more sales

LC Business Studies (28 decks)

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