May 4th test

Question 1

What is Maslow’s theory

Answer 1

Maslow argued that people have a hierarchy of needs and he put these into a pyramid. He argued that one level must be satisfied before a person can move to the next level

Question 2

What are three problems with maslow’s theory

Answer 2

Some rewards fit into more than one category Some people work for long hours without food or sleep How do we know when a level has been satisfied

Question 3

What four things impact the channels of distribution

Answer 3

The product being sold How reliable the parties in the distribution channel are The desired image for the product Any legal restrictions

Question 4

What are three methods of direct distribution

Answer 4

Internet sales Mail order Personal selling

Question 5

What are four advantages of internet sales

Answer 5

Allows a business to reach a global market Customer information is easily collected to target offers and promotions Customers can order from the comfort of their own home Sales can be achieved 24/7

Question 6

What are four disadvantages of internet sales

Answer 6

Many customers have a fear of using the internet and purchasing online as some sites are not secure Some products can be more expensive to purchase online due to cost of postage The customer is unable to see and handle the goods before buying Cost of setting up and maintaining a good quality website can be high

Question 7

What are three advantages of mail order

Answer 7

Convenience of shopping from home with credit facilities Mail order companies save costs as few sales staff required and tend to not require expensive high street premises Some mail order products are exclusive

Question 8

What are four disadvantages of mail order

Answer 8

Lack of personal contact High delivery charges Companies may incur high advertising and administrative costs If a credit facility is given, customers may end up with a high level of debt

Question 9

What are two advantages of personal selling

Answer 9

Allows for the product to be demonstrated and technical details can be explained Feedback can be recieved from the customer

Question 10

What is a disadvantage of personal selling

Answer 10

Customers may not like sales people going to their doors

Question 11

Four advantages of distribution via retailers

Answer 11

Provide a source of market resaerch Often located close to the customer Provide an after-sales service Retailer may offer credit facilities

Question 12

Two disadvantages of distribution via retailers

Answer 12

May not have specialist product knowledge Product is more expensive to buy for the customer

Question 13

What are four advantages of distribution via wholesalers

Answer 13

Provide a source of market research Saves the manufacturer from making small deliveries to retailers, saving on transport costs Saves the manufacturer on high storage costs due to the wholesalers purchasing in bulk Saves the manufacturer having money tied up in stock and being left with stock if consumer trends change

Question 14

What are two disadvantages of distribution via wholesalers

Answer 14

Control of after-sales is handed over to the wholesaler Wholesaler has limited specialist knowledge

Question 15

Two ways technology can assist staff training

Answer 15

E-learning Video conferencing

Question 16

how can technology assist in staff record keeping

Answer 16

Basic details about staff can be kept on a database

Question 17

Four recruitment and selection tasks which can be assisted by technology

Answer 17

Preparing job adverts Recruiment websites Collecting application forms The interview

Question 18

What is vertical integration

Answer 18

Occurs when two businesses at different stages of production join together

Question 19

What are the benefits of vertical integration

Answer 19

Eliminate the middleman and his profit Benefit from economies of scale Control where products are sold Control source and cost of supplies

Question 20

What are the two types of vertical integration

Answer 20

Backward vertical integration Forward vertical integration

Question 21

What is backward vertical integration

Answer 21

When a Business merges with or takes over a business at an earlier stage in production

Question 22

What is forward integration

Answer 22

When a Business merges with or takes over a business at a later stage of production.

Question 23

What is lateral integration

Answer 23

When two businesses with related goods which do not compete with each other join together. For example, Google and Youtube.

Question 24

What are the three roles in mintzberg’s theory

Answer 24

Interpersonal - the relationship the manager has with others Informational - the collection and passing on of information within and between departments Decisional - the making of all kinds of decisions

Question 25

What are the five function of management in fayols theory

Answer 25

Planning Organising Commanding Co-ordinating Controlling Modern managers: Delegating Motivating

Question 26

What are three styles of management

Answer 26

Autocratic Democratic Lassez-faire

Question 27

What are theory x workers

Answer 27

lazy and need autocratic managment to make them work

Question 28

What are theory y workers

Answer 28

Though to be motivated by being given responsibility and enjoy their work. This lends itself to a more democratic or laissez-faire approach to management

Question 30

Four factors that impact leadership style

Answer 30

The task Organisational culture Type of workforce The size of the business

Question 31

What are the three types of decisions

Answer 31

Strategic Tactical Operational

Question 32

What are strategic decisions

Answer 32

Long term decisions about where the organisation wants to be in the future. They don’t go into great detial about how the decisions will be acheived.

Question 33

What are Tactical decisions

Answer 33

How strategic decisions are going to be achieved in the short term. They go into detail about the resources needed how these will be used to achieve the aims.

Question 34

What operational decisions

Answer 34

Day-to-day routine decisions

Question 35

What is delayering

Answer 35

thie involves removing levels of managment withi the ornaisation in order to flatten the structure

Question 36

Four advantages of delayering

Answer 36

It offers opportunities for better delegation, empowerment and motivation as the number of managers is reduced and more authority passed down the hierarchy

It can improve communication within the business as messages have to pass through fewer levels of hierarchy

It can remove departmental rivalry if department heads are removed and the workforce is organised more in teams

It can reduce costs as fewer (expensive) managers are required

Question 37

Four disadvantages of delayering

Answer 37

Not all organisations are suited to flatter organisational structures - mass production industries with low-skilled employees may not adapt easily

Delayering can have a negative impact on motivation due to job losses, especially if it is really just an excuse for redundancies

A period of disruption may occur as people take on new responsibilities and fulfil new roles

Those managers remaining will have a wider span of control which, if it is too wide, can damage communication within the business. There is also a danger of increasing the workload of the remaining managers beyond that which is reasonable.

Question 38

four disadvantages of delayering

Answer 38

Not all organisations are suited to flatter organisational structures - mass production industries with low-skilled employees may not adapt easily

Delayering can have a negative impact on motivation due to job losses, especially if it is really just an excuse for redundancies

A period of disruption may occur as people take on new responsibilities and fulfil new roles

Those managers remaining will have a wider span of control which, if it is too wide, can damage communication within the business. There is also a danger of increasing the workload of the remaining managers beyond that which is reasonable.