Mocks Flashcards
What is a SWOT Analysis
A management technique that assesses a business in terms of its strengths, weaknesses, opportunities and threats.
McDonald’s - Strengths
Successfully rolled out new items like coffees, smoothies
Good reputation and Loyal customers
Well-known prestigious brand name
Multi-nationals
McDonald’s - Weaknesses
Harder to find more places for restaurants in the US
Dividend growth rate has been slowing down
Perception of unhealthy food - negative publicity
High Employee Turnover - low paying
McDonald’s - Opportunities
Opportunity for new restaurants outside the US
Upgraded menu
Expansion Plans - Refranchise 3500 restaurants by end of 2018
McDonald’s - Threats
Health-conscious customers
Other fast food restaurants
Motivation
The willingness of people to work hard and contribute their best effort
Autocratic Leadership
Do not like sharing their authority with subordinates but prefer to make most of the decisions themselves
Steve Jobs, Hitler
Democratic Leadership
Willing to discuss issues with staff and delegate power and responsibility where necessary
Bob Geldof
Risk Management
Identifying key business risks, their likely effect on the business, and then putting in place strategies to minimise them occurring
and when they do, to resolve them as quickly as possible
Methods of Risk Reduction
Fireproof Materials
Security devices
Health and Safety Programmes to teach workers
Exchange Rate
The price of one currency expressed in terms of another currency
Risk of Exchange Rates
Euro increases - Irish exports outside EuroZone increases
Unstable exchange rates make business planning harder and reduce business confidence
Chain of Command
How decisions flow from the top of an organisation down through the layers to the bottom
Span of Control
The number of people directly reporting to a manager
Non-Legislative
Does not involve legal process or agencies set up under law
Discussions and negotiations
Legislative
Using agencies set up by various Acts to try to resolve the issues regarding the proposed pay cut
Workplace Relations Commissions
Fear of Change
Loss of income
Extra burden of work
Challenges of Starting a new Business
Hiring employees
Time management
Delegating tasks
Marketing Strategy
Promotion
All the efforts (excluding price) made by the seller
to communicate and influence the target market
to buy a product
Sales Promotion
Incentives offered to customers to attract their attention
Increase sales and customer loyalty
Special offers, giving out free samples, coupons
Public Relations
Communicating with the media using news stories to create good publicity or respond to negative publicity
Sponsorship, paying celebs, contacting press
Merchandising
Point-of-sale promotional displays to attract attention to a product
Window displays, cardboard displays, free samples
Functions of a Feasibility Study
Determine what legal issues need to be considered
Benefits of a Functional Organisational Structure
Builds up staff skills and expertise in each functions
Clear promotional paths for staff based on expertise
Disadvantages of Functional Structures
Employees can focus on their own departmental goals and lose sight of overall business mission
Communications between departments can be slow
Ad Hoc Meetings
Short notice to deal with a problem that has arisen
Board Meetings
Meetings of the directors in a company
Monthly
Discuss stragetic plans, review progress, decisions
Stock Control
Ensures the firm has the right amount of goods at the right time without incurring stockholding costs
Just in Stock
Quality Control
Ensuring the product and service standards
expected by customers are properly met
Benefits of Expansion
Reduce costs - Economies of Scale Eliminate competition Empire building Acquire new products Reduce risk
Primary Picketing
Employees and trade union officials walking up and down outside the workplace indicating a strike is in progress
Negotiation
All parties explain their positions
Understand their differences
Bargain to arrive to a resolution
Conciliation
Third party selected by the parties seeking a settlement sort out differenced and negotiate
Arbitration
Third party investigates a dispute and recommends a solution
Role of Interest Groups
Influence trade unions, Irish government, EU and wider society
Provides advice to members on economic and business matters
Business Ethics
Moral rules that guide business decision-making
Decide whether a decision is right or wrong, honest and fair, regardless of profitability
How to Encourage Business Ethics
Use a code of ethics
Encourage whistleblowing
Lead by example
Staff training in business ethics
Privatisation - Benefits/Negatives
Large lump sum of income for government to re-invest in economy
Reduce waste and inefficiency
Causes redundancies
Important services not protected
Extend a Product Life Cycle
Change packaging
Decrease price
Increase advertising
Promotion
Implications of Operating in a Niche Marget
Small market - no competition
High cost-based
Limited goods
Less risk - there is a certain target market
Benefits of Business Plan
Easier to obtain finance
Acts as a warning system
Sets targets for a business
Reduces risk - predicts profits generated
