May 4th test Flashcards
What is Maslow’s theory
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
What are three problems with maslow’s theory
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
What four things impact the channels of distribution
The product being sold How reliable the parties in the distribution channel are The desired image for the product Any legal restrictions
What are three methods of direct distribution
Internet sales Mail order Personal selling
What are four advantages of internet sales
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
What are four disadvantages of internet sales
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
What are three advantages of mail order
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
What are four disadvantages of mail order
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
What are two advantages of personal selling
Allows for the product to be demonstrated and technical details can be explained Feedback can be recieved from the customer
What is a disadvantage of personal selling
Customers may not like sales people going to their doors
Four advantages of distribution via retailers
Provide a source of market resaerch Often located close to the customer Provide an after-sales service Retailer may offer credit facilities
Two disadvantages of distribution via retailers
May not have specialist product knowledge Product is more expensive to buy for the customer
What are four advantages of distribution via wholesalers
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
What are two disadvantages of distribution via wholesalers
Control of after-sales is handed over to the wholesaler Wholesaler has limited specialist knowledge
Two ways technology can assist staff training
E-learning Video conferencing
how can technology assist in staff record keeping
Basic details about staff can be kept on a database
Four recruitment and selection tasks which can be assisted by technology
Preparing job adverts Recruiment websites Collecting application forms The interview
What is vertical integration
Occurs when two businesses at different stages of production join together
What are the benefits of vertical integration
Eliminate the middleman and his profit Benefit from economies of scale Control where products are sold Control source and cost of supplies
What are the two types of vertical integration
Backward vertical integration Forward vertical integration
What is backward vertical integration
When a Business merges with or takes over a business at an earlier stage in production
What is forward integration
When a Business merges with or takes over a business at a later stage of production.
What is lateral integration
When two businesses with related goods which do not compete with each other join together. For example, Google and Youtube.
What are the three roles in mintzberg’s theory
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
What are the five function of management in fayols theory
Planning Organising Commanding Co-ordinating Controlling Modern managers: Delegating Motivating
What are three styles of management
Autocratic Democratic Lassez-faire
What are theory x workers
lazy and need autocratic managment to make them work
What are theory y workers
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
Four factors that impact leadership style
The task Organisational culture Type of workforce The size of the business
What are the three types of decisions
Strategic Tactical Operational
What are strategic decisions
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.
What are Tactical decisions
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.
What operational decisions
Day-to-day routine decisions
What is delayering
thie involves removing levels of managment withi the ornaisation in order to flatten the structure
Four advantages of delayering
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
Four disadvantages of delayering
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.
four disadvantages of delayering
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.
