Paper 1 Flashcards
Organisation
A group of people that is formed for a given purpose.
Profit
The difference between the total costs and total revenue of a business
Private Sector
The part of the economy owned by individuals and groups of individuals
Public Sector
The part of the economy where production is organised by the state or government
Voluntary/ Third Sector
The part of the economy that consists of non-profit organisations
What type of organisations does the private sector include?
Organisations and individuals that provide services and goods. Their primary aim is to make profit.
Examples of sole proprietors
Shopkeepers, electricians, plumbers, hairdressers & restaurant owners
Examples of partnerships
Dentists, accountants, lawyers & opticians
Number of employees for a micro-sized business
1-9 employees
Number of employees for a small-sized business
10-49 employees
Number of employees for a medium-size business
50-249 employees
Number of employees for a large-size business
250+ employees
Hierarchical structure
An organisation structure that follows a chain-of-command from the top executives to regular employees. It resembles a pyramid, and the individual with the most authority occupies a sole senior-most position above the pyramid, while the junior-most workers occupy the positions at the bottom.
Flat structure
An organisational structure with only a few layers of management. Managers have a wide span of control with more subordinates, and there is usually a short chain of command.
Matrix structure
A combination of two or more types of organisational structures. It is a way of arranging your business so that you set up reporting relationships as a grid rather than in the traditional hierarchy. Individuals work across teams and projects as well as within their own department or function.
Holacratic structure
A governance structure characterised by a distribution of power among self organising groups, rather than the top-down authority in the typical hierarchical corporate culture model.
Human Resource Department
The department within an organisation that looks after employees. They resolve any issues that may occur and also help to protect employees from anything such as discrimination, etc. They make up the workforce of an organisation , business sector, industry or economy. Can be known as personnel or people.
Research and Development Department
The department includes activities that companies undertake to innovate and introduce new products and services. It is often the first stage in the development process. The goal is typically to take new products and services to market and add to the company’s bottom line.
Sales Department
The department within a company that is responsible for selling its products.
Marketing Department
The department within an organisation that drives the promotional engine of a business. It is responsible for increasing brand awareness overall while also driving potential and recurring customers to a company’s products or services.
Purchasing Department
The department within an organisation that buys the company’s supplies from a supplier.
Production and Quality Department
The department within an organisation that checks the quality of products to make sure they’re fit for customers use and don’t break any of the Customer Protections Acts.
Finance Department
The department within an organisation that is responsible for ensuring the efficient financial management and financial controls necessary to support all business activities.
Customer Service Department
The department within an organisation that deals with customer issues such as complaints. It offers support to customers before and after purchasing a product or service.
IT Department
The department within an organisation that is charged with establishing, monitoring and maintaining information technology systems and services.
Administration Department
The department within an organisation that provides administrative and technical support in the areas of human resources, budgetary, strategic planning, legal affairs, calls for tenders, facilities and security.
Business plan
A written document that describes your business. It helps you to spot potential problems.
Key Performance Indicators
A quantifiable measure of performance to evaluate the achievement of an organisation’s objectives over a specific period of time.
The 7Ps of the marketing mix
Planning process, people, product, pricing, place, promotion, physical evidence
Governance
A system by which an organisations makes and implements decisions in pursuit of its objectives.
Examples of internal methods of communication
Employee emails, team meetings, face-to-face discussions
How do businesses use social media campaigns to communicate?
use written materials in their posts, verbal in the live videos and still images have no sound so are non-verbal.
What are the roles of the Information Commissioner’s Office (ICO)?
Protects personal data, regulates freedom of information
What is the role of the Equality Advisory Support Service?
To assist individuals on equality/ human rights
What is the role of the Health & Safety Executive?
To prevent workplace death, injury or ill health
What is the role of the Equality and Human Rights Commission?
To enforce the legislation of the Equality Act 2010
What are the 4 types of discrimination?
Direct discrimination, indirect discrimination, harassment & victimisation
What is direct discrimination?
Treating one person worse because of protected characteristics.
What is indirect discrimination?
A rule or policy with worse impact on people with protected characteristics.
What is harassment?
Being treated with hostile, offensive, degrading or humiliating behaviours.
What is victimisation?
Being treated unfairly if taking action under the Equality Act, or supporting someone else to do so.
Risk registers and audits
A tool used to track and monitor risks that might impact projects. All risks should always be logged even if positive or negative.
Risk management
Summarises risks and what you have/ are doing about them.
Employment Right Acts 1996
Consolidates several previous acts to clarify employees’ rights, so organisations and employees know what rights they have.
Employment Act 2002
Sets out the minimum grievance and disciplinary procedures required by all employers.
Employment Relations Act 1996 and 2004
Sets out the requirements imposed on employers and employees regarding trade union membership and industrial action.
Equality Act 2010
Legally protects people from discrimination in the workplace and in wider society.
Health & Safety at Work Act 1974
Imposes a duty to ensure as far as is reasonably practicable the health, safety and welfare at work based on measuring risks against prevention costs.
How do you measure business size?
Number of employees, sales revenue, profit levels, market share, capital employed & market capitalisation
Mission Statement
A formal summary of the aims and values of a company, organisation, or individual.
Vision Statement
Outlines a business’ aspirations
Transformational leadership
A leadership style that can inspire positive changes in those who follow. Tries to build a new person.
Delegative leadership
Focuses on delegating initiative to team members, hands off leaders
Authoritative leadership
Dictates policies and procedures
Transactional leadership
Rely on punishment rewards to achieve optimal goal
Participative leadership
Leaders listen to their employees and involve them in the decision-making process
What does ICO stand for?
Information Commissioner’s Office
Trading
An economic concepts that identifies trading as the buying and selling of goods and services.
Customer protection
A section of law designed to safeguard buyers of goods and services against deception, deceptive products and fraudulent business practices.
The Cartel Office
An agreement between competitors to either limit production, agree market share, fix price levels and rig bids to create barriers for other competitors, or increase costs to customers.
Competition and Markets Authority (CMA)
is empowered to enforce the prosecution of anti-competitive activity between organisations. Prosecutions of anti-competitive actions can only be made by the CMA or the Serious Fraud Office (with prior agreement from the CMA).
Trading Standards Office (TSO)
A government service designed to protect consumers from rogue traders and scams. It indirectly helps legitimate businesses to trade honestly and fairly by challenging illegal business practices.
The Enterprise Act 2002
Act to tighten the controls on competition law by ensuring any organisations who operate in an anti-competitive manner are caught and punished.
The Competition Act 1998
Sets out a series of banned anti-competition practices making it a criminal offence for any business organisation to form an agreement with competitors to rig bids, fix prices, limit production or supplies, and share markets or customer.
The Environment Act 2021
No decision on trading location can be taken without considering the impact of doing business on the environment.
Economic growth
An increase in the production of goods and services over a specific period. The measurement must remove the effects of inflation.
Inflation
Used to describe rising prices
Rate of inflation
How quickly prices go up
Revenue
All the money that something has coming in. Main sources of revenue are from goods sales or service fees.
Demand
The amount of a product customers are prepared to buy at different prices.
Supply
The amount of a product businesses are prepared to sell at different prices.
Ethics
The set of moral values that an individual or group uses to decide on what they consider is needed to ‘do the right thing’.
What are the aims of the Environment Act 2021?
To increase recycling, increase water water quality, increase air quality, tackle waste disposal, halt the decline of species & improve the natural environment.
