Mrs Berry Flashcards
What is capacity utilization?
Adjusting the price of a good or service according to the demand at that current time (in order to maximize sales at any given time)
what is the formula for capacity utilization?
current capacity/maximum capacity*100
what is the difference between leadership and management?
management is doing things right and leadership is doing the right things
what are the two different types of decision making?
scientific and intuition
describe scientific decision making
using quantifiable data and using logical thought processes but might be time consuming and expensive
describe intuition decision making
quick decision making using creativity and innovation, difficult to justify and relies on experience
what is the Tannenbaum Schmidt continuum?
a leadership model based on a scale for which both extremes of leadership style are represented for managers and everything in between
how is the Tannenbaum Schmidt continuum measured?
on a scale of 1-7 with 1 being no delegation to decisions(autocratic) and 7 being highly inclined to delegate decisions to others(laissez faire)
what are the 4 leadership styles?
autocratic, paternalistic, demographic and laissez faire.(tells, sells, consults participates)
Describe autocratic leadership.what are its strengths and weaknesses?
the leader gives orders which they expect to be followed precisely-easy and quick decision making but staff will not question them so mistakes may slip through
Describe democratic leadership.what are its strengths and weaknesses?
democratic leadership empowers employees to make a decision- staff are involved in discussions, however not everyone will always agree so some are unhappy
Describe paternalistic leadership.what are its strengths and weaknesses?
semi authoritarian control, still makes the main decisions- high employee loyalty because hry trust your good intentions but making tough decisions is harder because it will affect your colleagues that you care about maybe.
Describe Laissez faire leadership.what are its strengths and weaknesses?
Live and let be, team led discussions and they participate after presenting an idea- empowers staff but you could be over turned
what is opportunity cost?
the loss of one alternative because you chose the other
what is the difference between scientific and intuition decision making?
scientific is supported by quantifiable evidence, encourages logical thought process and may require expensive data. Intuition allows for quick decision making, encourages creativity and innovation, difficult to justify and relies on experience and expertise
what is a stakeholder map?
similar to a market map, it will assess how important each stakeholder is relating to a business action/decision. it is measured by the power they have over the business and the level of interest they have.
what are examples of financial objectives.
return on investment, capital structure, revenue, costs, profits and cashflow
what is ROI about?
Return on investment is a measure of profitability and performance. it is set as a percentage
what is the formula for ROI?
operating profit/ capital invested X100