Paper 1 Flashcards

Question

How to protect a business from uncertainty?

Answer 1

- Excess cash supplies. - Reduce number of creditors increase number of debtors. - Reduce number of payable days given. Increase payable days to suppliers. - Diversify. - Foster agility in decision making and actions.

Answer 2

• The overriding goal of the business. • The reason for its existence. • A strategic perspective. • A vision for the future.

Answer 3

• Excites, inspires, motivates and guides. • Differentiates the business from its competitors. • Defines the markets or business in which the firm wants to operate. • Is relevant to objectives and therefore enables progress towards them to be measured.

Answer 4

A qualitative statement of the businesses aims.

Answer 5

A long term-plan from which business objectives are derived.

Answer 6

Targets which the business adopts in order to achieve its overall corporate aims. All business objectives should be smart.

Answer 7

• Motivate employees. • Provide a clear focus for decision making. • A means of measuring performance. • Targets for individual and group achievement. • A focus for all activity. • Reduce uncertainty. • Provides a sense of unity.

Answer 8

Corporate = The overall business targets. The corporate objectives translate down to each department or function.

Answer 9

Marketing Human Resources Finance Operations

Answer 10

• Survival • Profit maximisation • Sales maximisation • Market share • Cost efficiency • Employee welfare • Customer satisfaction • Social objectives

Answer 11

• Competition • State of the economy • Age of the business • Size • Legislation • Market conditions • Social attitudes • Political factors • Ownership (investment) • Views of owners and managers • Risk and attitude to risk • Corporate culture

Answer 12

Owned by self-employed individuals.

Answer 13

+ Easy to start up - no registration is needed. + Owner can be there own boss. + Owner keeps all of the profits. - Requires a wide range of skills and flexibility. - Hours are likely to be long. - Unlimited liability.

Answer 14

A business owned by two or more individuals.

Answer 15

+ Joint ownership of running a business. + A contract of relationship will be set up through a deed of partnership. + Shared responsibility in decision making. + Share costs and risks of setting up and running the business. + More variety of skills and ideas. - All have to agree on business decisions which can lead to stress and conflict. - Any profits need to be shared between o

Answer 16

- Public Company offered to the general public. - Shares can be freely sold and traded on the stock exchange. - Owned by shareholders. - Must have 2 directors. - No need to consult the owners for selling and buying shares. - Shares can be transferred freely.

Answer 17

+ Huge amounts of money can be made through stock market flotation. + Finance easier to raise through issuing shares - increases value of company’s shares. + Size makes it easier to gain economies of scale. + Can dominate the market because of their size - raises the company’s public profile and increase its visibility with customers, suppliers and potential investors and grow its customer base. + Risks are spread among a larger group of shareholders. + Company will have a board of directors made up of independent directors and representatives from major shareholders. This can extend decision making process and bring in additional expertise.

Answer 18

- Accounts openly available to the public. - Shareholders expect dividends. - Less control over decision making and possible takeover. - Board of directors is accountable to external shareholders.

Answer 19

- Private company not offered to the general public. - Has at least one director. - Number of shareholders is unlimited, liability is spread among multiple owners rather than just one. - Shares are sold to close friends and others and that can only be done if all of the shareholders agree. - Shares cannot be sold freely.

Answer 20

+ Shareholders have limited liability. + Easier to raise capital through internal shareholders known to the business. + Owners may pay less tax than if they operate as a sole trader.

Answer 21

- Cannot raise large amounts through selling shares publicly. - Accounts published and publicly available. - Profits are shared between more members. - Harder to set up than sole trader or partnership.

Answer 22

A contractural relationship between a franchisor and a franchisee that allows the business owner to use the franchisor's brand and method of doing business to distribute products or services to customers.

Answer 23

+ Effective way to grow the business. + Franchisor gets set up fee and royalty payments. - Risk of franchisee damaging brand if not run effectively.

Answer 24

+ Franchisees receive a 'business in a box' - plans, products, marketing and a recognised brand. + Franchisees are provided with training and support from franchisor. - Expensive set up fees and little freedom to change business format. - Royalty payments - a share of sales to back to the franchisor.

Answer 25

A business that trades for a social and/or environmental purpose. They trade in order to benefit the community. These businesses have social aims as well as financial. Not a charity; they achieve a social aim through donations and grants not through trading.

Answer 26

The aim of lifestyle business is to provide a great quality of life for the owner. Owners start a business hoping to sustain a certain level of income. They may start a business doing something they really enjoy, it allows an entrepreneur to live how they want and still run a business.

Answer 27

Could be run as any legal form, but providing products and/or services solely through the internet - e-commerce. Available to the customer 24/7. Can be managed from anywhere, owner doesn't need to be sat in an office.

Answer 28

Every business faces limited resources (scarce) and therefore have to make choices.

Answer 29

- Finance - Time - Capacity - Skills and capabilities

Answer 30

The cost of missing out on the next best alternative when making a decision.

Answer 31

Personal: - Entrepreneur may miss out on a regular income as a consequence of starting their own business. - Long hours could be worked at the expense of family time. Developing business ideas: - One idea is chosen, whilst another idea is sacrificed. - Cost of launching idea at the expense of further development.

Answer 32

- Potential sales from each idea. - Cash/financial commitment required. - Wether the timing is right. - Wether the decision fits the skill set/wether posses staff with the right skills. - Competitive landscape. - Market research.

Answer 33

A negative consequence/compromise of a choice made by a business.

Answer 34

- Less market research (lower cost) --> Less successful new product launch (lower sales). - Higher quality standards to build reputation --> More quality control and assurance costs.

Answer 35

A market is the only place that buyers and sellers come together to exchange goods or services. There will normally be an exchange of money as a set price.

Answer 36

The department tasked with targeting the right product for the right target market using the right combination of price, promotion and place (4 p's). Marketing is about understanding the needs and wants of customers. Marketing strategy = A plan of how you’re going to achieve your marketing objective.

Answer 37

The attempt to create products or services which is targeted at the whole market e.g. mars bars.

Answer 38

The attempt to create products or services which is targeted toward a specific segment of a market e.g. hotel chocolat.

Answer 39

• People - Entire market • Product - Wide appeal, generic - low quality • Promotion - Mass media • Price - Competitive • Production - High output, low cost, economies of scale.

Answer 40

• People - smaller, more specifically targeted market. • Product - specific appeal, medium-high quality. • Promotion - Generally targeted. • Price - High premium • Production - low output, high cost, economies of scale difficult.

Answer 41

• Large scale production means economies of scale (low costs). • Large volume of sales - wide customer base (high revenues, can be reinvested in R&D). • Less risk as focused on large market.

Answer 42

• Lots of competition. • High volume production not flexible to demand changes. • Products are similar so must be differentiated through marketing which can be expensive.

Answer 43

• Less competition • Can often charge a higher price - profit margins are higher. • Builds up specialist skill and knowledge = market expertise. Smaller customers easier to target and satisfy: loyalty. • Small scale production can be flexible and follow trends.

Answer 44

• Higher unit costs - lack of economies of scale. • Risk of over dependence on single market/product. • Very risky as demand may not be constant.

Answer 45

This is the total value or volume of sales in the market. It can be measured in monetary terms e.g. £20 million or by the amount sold e.g. 1 million cars.

Answer 46

Number of units sold X Price

Answer 47

This is the proportion of total market sales that a firm has.

Answer 48

Sale of one firm/Total market sales X 100

Answer 49

A market that is constantly changing. Sellers respond to the changing needs of buyers by improving existing products and services or introducing new ones. Businesses have to adapt their marketing in response to these changes. A business that fails to keep up with trends in the market will soon loose competitiveness.

Answer 50

The environment is dynamic: • Social trends. • Changes in technology. • Competitive environment. • Consumer tastes.

Answer 51

A market in which the pace of change is slow; market size and share are fairly constant with little variation in price. Innovation is rare and may consist of minor changes to existing products.

Answer 52

• Markets have changed due to technological changes, especially the rise of the internet. • Businesses such as Amazon have change markets due to the wider variety of products.

Answer 53

The process of buying and selling goods and services over the internet. Also known as e-commerce of e-tail.

Answer 54

• Greater convenience - breaks down geographical barriers. • Greater choice. • More price transparency. • Access to new products/services.

Answer 55

• Not all consumers can or will use online retailing. • Increased risk of fraud.

Answer 56

• Small businesses can reach global markets. • Online sales can be added to existing sales channels. • Cheaper to run as no overheads of running a store. • Fast opportunities for growth.

Answer 57

• Increased competition from global online stores. • May lose share from conventional area e.g. high street shops. • May have to reduce prices due to greater consumer knowledge. • Will need a specialist to setup and maintain the website. • Transparent to the competition.

Answer 58

The term Digital Economy refers to economic transactions and business operations that are based on digital computing technologies.

Answer 59

• Supporting infrastructure (hardware,software, telecoms, networks) • E-business (any process that an organisation conducts over digital networks). • E-commerce (buying and selling of goods and services online).

Answer 60

• The digital economy as this affects the consumer and producer. • Changes in consumer tastes and preferences - Products are wanted that meet specific needs (could be achieved through innovation). • Government intervention - Increasing legislation in an industry can alter the way the market operates. - Changing demographics - The amount of competition - Changing legislation

Answer 61

A brand is a product produced by one business using a specific name. Branding involves the creation of an identity for the business that distinguishes that firm and its products from other firms. • Customers have a perception of what to expect from a particular brand e.g. quality, satisfaction. • A brand is a trademark that cannot be copied. • Brands can be: Name, shape, symbol, colour, logo.

Answer 62

• Encourages customer loyalty, leading to repeat purchases and word of mouth recommendation. • Companies able to charge higher price, especially if brand is market leader. • Greater consumer awareness. • Increased sales and market share.

Answer 63

• High costs associated with promotion to gain brand recognition in first place. • Constant promotion is necessary to maintain brand. • A single bad event may affect all products the brand sells. • Brand names have to be protected by being registered world wide.

Answer 64

- The price a business is able to charge. - The buying power of the customer. - The selling power of the supplier. - Availability of substitutes. - Willingness and ability of new firms to enter the market.

Answer 65

The number of firms that exist within a market. This can range from a monopoly (where one firm dominates the industry) to where there are any buyers and sellers.

Answer 66

- Competitive rivalry - Number of competitors, quality differences, other differences, switching costs, customer loyalty. - Threat of new entry - Time and cost of entry, specialist knowledge, economies of scale, technology protection, barriers to entry. - Supplier power - Number of suppliers, size of suppliers, uniqueness of service, your ability to substitute, cost of changing. - Threat substitution - substitute performance, cost of change. - Buyer power - number of customers, size of each order, differences between competitors, price sensitivity, ability to substitute, cost of changing.

Answer 67

- Offensive = Try to increase sales or develop new markets. - Defensive = React to the competition and try to maintain their market share. - A mixture of both. 1) Being flexible in the way that they operate. 2) Carrying out market research to have a better understanding of their customers. 3) Invest in staff training, new products and processes. 4) Innovate and improve to be better at what they do

Answer 68

Occurs when new technologies make it possible to create completely new products.

Answer 69

Means using new technology to improve production methods, so that costs are reduced without a loss in quality. This could also be through distribution channels, stock control systems and supply chains.

Answer 70

- The market: Dynamic markets are constantly changing. Rivals are trying to take market share. - The economy: The business cycle, unemployment, inflation, exchange rates or interest rates. - The government: Taxation, Government spending, legislation or trade negotiations. - Geopolitical events: Events in other countries, e.g. wars, floods, trade wars, famine or effects on commodities.

Answer 71

The collection and analysis of data and information to inform a business about its market.

Answer 72

Data collected and analysed is used to: - Identify and anticipate customer needs and wants. - Quantify likely demand. - Gain insight into consumer behaviour.

Answer 73

Involves the collection of first hand data that did not exist before and therefore it is original data.

Answer 74

Research that has already been undertaken by another organisation and therefore already exists.

Answer 75

- Focus groups - Interviews - Surveys - Questionnaires - Observation - Product testing and trials

Answer 76

- Internet. - Newspapers and magazines. - National and local government e.g. office for national statistics. - Market research organisations e.g. MORI, MINTEL - Professional bodies e.g. ACCA - International bodies e.g. EU - Academic organisations e.g. Universities

Answer 77

A form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging.

Answer 78

+ Easy to measure customers reaction. + Face to face interactions provide richer insights. + More unique and personalisable.

Answer 79

- Can be costly and time consuming. - Small groups (do they represent range of opinions) - Possible that members may not give honest opinions.

Answer 80

+ Up to date + Tailored to precise business needs. + Rivals do not have access to this data.

Answer 81

- Expensive - Time consuming to collect - Some methods e.g. focus groups require certain skills

Answer 82

+ Quick and available immediately + Free or very cheap + More flexible and adaptable

Answer 83

- Out of date - Might be inaccurate - Rivals can access this data

Answer 84

Based upon numerical data, measures things and produces statistical information. For example a survey: telephone, posts, face-to-face and online. Based on larger samples and is therefore more statistically valid.

Answer 85

Based upon feelings, attitudes and opinions. It aims to identify why consumers behave the way the do e.g. how customers feel about a new product. Focus groups and interviews.

Answer 86

• Essential for important new product development and launches. • Focused on understanding customer wants = very useful insight for a business. • Can highlight issues that need addressing e.g. why customers won't buy. • Effective way of testing elements of the marketing mix - e.g. new branding, promotional campaign

Answer 87

• Expensive to collect and analyse - requires specialist research skills.. • Based around opinions - always a risk that sample is not representative.

Answer 88

• Data relatively easy to analyse. • Numerical data provides insights into relevant trends. • Can be compared with data from other sources (e.g. competitors, history).

Answer 89

• Focuses on data rather than explaining why things happen. • Doesn't explain the reasons behind numerical trends. • May lack reliability of sample size and method is not valid.

Answer 90

An outward looking approach to new product development where the key focus is on what the customer wants. • It is informed by market research. • The business concentrates on understanding the needs of the consumer and then adapting or producing products to meet those needs. • It reduces, but does not eliminate, the risk of new product development.

Answer 91

An inward looking approach to new product development where the key focus is on what products can be made and the production process. • Informed by scientific research and technical development (R&D). • The business will concentrate on producing high quality products and then later look to create a market for them. • Most common with technologically advanced products where the consumes doesn't have the technical knowledge or insight to realise that this product could exist or that they would want it.

Answer 92

When the marker is split into subgroups of consumers with similar characteristics. This helps to identify different type of consumer and their respective needs and wants.

Answer 93

1) Demographic 2) Geograohic 3) Income 4) Behavioural

Answer 94

Identifies subgroups of the population based on their demographic profile or characteristics. Age, gender, level of education, race, religion, family size and stage in life.

Answer 95

Defines market categories based on where people love e.g. regions, cities or neighbourhoods. People in different geographical areas display different characteristics and needs.

Answer 96

Identifying subgroups of the market based on their levels of income and profession. A common method uses socio-economic groupings. These include; A - Higher managerial B Intermediate managerial (solicitors, accountants lawyers) C1 - Supervisory, clerical or junior professional. C2 - Skilled manual D - Semi and unskilled workers (window cleaner, garbage collector) E - Pensioners, casual workers, students and unemployed.

Answer 97

Characterises sub groups based on the behavioural patterns of the consumer rather than their characteristics. This might include: • Reasons for making purchase E.g. needs, emotional, rewards • Frequency of purchase e.g. heavy user or light user. • Time of purchase E.g. seasonal, weekly, late night. • Brand loyalty • Method of purchase E.g. online • Triggers e.g. response to digital marketing

Answer 98

+ Advertising can be targeted at specific market segments so that advertising spend is more effective. + The most profitable and least profitable customers can be identified, + It helps the firm improve existing products and customer service. - Research and development and production costs might be high as a result of marketing several different product variations. - Promotional costs may be high as advertisements and promoted might be needed for different segments. - Production and stock holding costs will be high than for the option of just producing and stocking one differentiated product. - May be difficult to identify a segment and consumers can belong to multiple segments at the same time. - Not everyone within a segment will behave in the same way.

Answer 99

• Websites - Invite feedback through blogs. - The number of times visited and timings of visitors. - Online polls and surveys. - Cookies. • Social networking - Reviews, blogs, likes/dislikes, viral marketing and customer feedback. • Databases - Data mining and trends.

Answer 100

• Gathering and processing data can be very expensive. • Organisations may lack the expertise to gather primary data and also lack the funds to pay specialist market research agencies. • Data may not be accurate - leading questions, unrepresentative samples, biased interviews. • Time constraints - don’t have long time to collect research as they need to make decisions as quickly as possible in order to maintain or improve their position in the market.

Answer 101

How individual products or brands are seen in relation to their competition by consumers. This may stem from pricing, marketing or quality,

Answer 102

The use of a grid showing two features of a market, such as price and consumer age. Individual brands or businesses are added to the grid to show potential niches or gaps in the market.

Answer 103

• Enables a business to spot gaps in a market. • Can help a business differentiate its products from competition.

Answer 104

• It can sometimes be hard to categories the same products and services. • Identifying a gap doesn’t mean there is need for a product. More market research must be done.

Answer 105

The value of the finished food or service over and above the cost of achieving it. This is achieved when a business increases the worth of its factor inputs by creating new output. Added value can be measured in terms of financial worth.

Answer 106

4 factors of production: • Land • Labour • Capital • Enterprise

Answer 107

• Manufacturing - higher quality materials, more experienced workers. • Branding • Marketing - advertising • Customer service • Unique selling point • Technology

Answer 108

• Charging a higher price. • Increased profit. • Increased market share. • Creating a point of difference from the competition. • Protection from competitors trying to steal customers by charging lower prices. • Focusing a business more closely on its target market segment. • Better brand image/reputation.

Answer 109

Means having an edge over rival products. It may be based on low costs and prices, an innovative design feature or a reputation for customer service.

Answer 110

Having a unique feature that makes a product stand out from other products in the marketplace.

Answer 111

A feature that distinguishes a product from its competitors.

Answer 112

A firm can enjoy a competitive advantage if it is either lowest cost or highest differentiation. • Porter’s basic premise is to be one thing or the other and not stuck in the middle. He emphasises the danger of the middle ground where there is little protection from rival firms. • He believes that firms must put their flag in one camp and remain clearly focused on this. • Marketing messages must be clear and non-contradictory.

Answer 113

Mass market = Cost Leadership Niche market = Focused cost leadership

Answer 114

Mass market = Differentiation Nice market = Focused differentiation

Answer 115

Means being able to offer your product or service at the lowest cost possible. • Both operational and financial objectives must focus on cost minimisation. • A firm that operates with the lowest cost can charge the lowest prices but doesn’t necessarily have to.

Answer 116

Means being able to offer a product or service that stands out from competition. • Product - has to appear better than competition, USP. • Promotion - Create desire, exclusivity, brand loyalty. • Operation objectives will focus on R&D and innovation.

Answer 117

The design factors - function, cost and aesthetics - are mixed together in different ways in order to appeal to different target markets.

Answer 118

• Product • Price • Place • Promotion

Answer 119

Changes are made to the design mix to reflect social trends. Social trends refer to the way society as a whole behaves and the values that determine that behaviour.

Answer 120

• Changes as a result of concerns to resource depletion: waste minimisation, recycling and reusing. • Changes about ethical sourcing.

Answer 121

Sustainability = making a product without affecting the long-term supplies of the inputs into the product. • Non renewable materials become scarcer and costs increase. • Designing the product so it can be used (consumed) sustainably e.g. switching from scarce metals to plastics.

Answer 122

• Aims to eliminate waste before it is produced and reduce its quantity and toxicity. • Prevention is the primary goal, followed by reuse, recycling, treatment and appropriate disposal. • Waste minimisation helps to keep product costs low and reduce environmental footprint.

Answer 123

• Instead of being dumped most parts are re-used or recycled, e.g. cards or plastics. • Can impact aesthetics of toothpaste but provides a more functional benefit with a potential marketing strategy associated with it.

Answer 124

• Ethical sourcing is not wasting resources or damaging the lives of employees. • Many customers avoid products that are associated with child labour or sweatshops.

Answer 125

• Can act as a USP and attract customers. • Charge higher prices. • Good for the environment. • Positive public relations - add value.

Answer 126

• Can increase a businesses costs. • Can be seen as being ‘false’ or communicated only for marketing. • Aesthetics can differ. • Might not see any financial benefit from the change.

Answer 127

One of the four pillars of the marketing mix. Promotion involves using a variety of methods to communicate with customers and persuade them to buy your products. • The main aim of promotion is to ensure that customers are aware of the existence and positioning of products. • Awareness • Interest • Desire • Action

Answer 128

1) Advertising - Includes; brochures, leaflets, choice of advertising media, radio, print, TV. 2) Sales promotion - Includes; competitions, vouchers, deals, money off. 3) Publicity - Includes; speeches, PR stunts and sponsorships. 4) Personal selling Includes; telemarketing and sales people. The elements must be integrated in a cohesive, consistent and logical manner.

Answer 129

Sales promotion is the use of short-term incentives to encourage buyers to purchase; such as special offers, free samples, competitions and price cuts.

Answer 130

• What will it cost? • What will it do to the brand image? • To what extent will the offer be effective?

Answer 131

Communicating with the media and other interested parties to enhance the image of the business and its products, and therefore increase sales, • Costs no money, unless a professional company is hired to carry out PR. • Releasing stories to newspapers and other media (e.g. Tv, Radio, Magazines)

Answer 132

• Sponsorship • Direct marketing • Personal selling

Answer 133

Common form of public relations. A business will sponsor and individual or event to raise its profile.

Answer 134

Marketing activity that is aimed directly at the customer, such as direct Mail, door-to-door leaflets or email.

Answer 135

Based on face-to-face contact with customers.

Answer 136

+ Can reach a large audience - wide coverage. + Used to build brand loyalty. + Control of the message. - Can be very expensive. - No guarantee it will increase sales.

Answer 137

+ Can be relatively cheap. + Builds brand awareness. + Should have a direct impact on sales. - Cannot control the way that the story is covered by the media.

Answer 138

+ Relatively cheap. + Quick and easy. - May not get read.

Answer 139

+ Can entertain and interest the consumer from competitors. - Often short-term effects. - Can encourage brand switching.

Answer 140

+ Two-way communication; can answer customer queries. - Can be expensive. - Can only reach a limited number of customers.

Answer 141

1. Stage in the product life cycle - position in the life cycle will require different promotional methods. 2. Nature of the product - What information do customers require before they buy? 3. Competition - What are rivals doing? What promotional methods are traditionally effective in a market? 4. Marketing objectives and budget - what does promotion need to achieve? How much can the firm afford? 5. Target market - Appropriate ways to reach the target market segments.

Answer 142

A characteristic, name or symbol that distinguishes one product from another rival.

Answer 143

1. Product brand 2. Service brand 3. Umbrella (“family”) brands 4. Corporate and Own-Label brands 5. Own-label 6. Global brand

Answer 144

Brands associated with specific products. Fast moving consumer good brands are some of the best examples. Marmite, persil, potnoodle, crest.

Answer 145

Brands that add perceived value to services, either delivered face-to-face or via online and apps. Dropbox, vue, Uber, Netflix.

Answer 146

Brands that are assigned to more than one product, umbrella branding makes different product lines easily identifiable by the consumer by grouping them under one brand name.

Answer 147

Occurs when a business becomes a public limited company and seeks to raise capital by selling shares to the public on the stock exchange. This initial sales of shares is called initial public offering. The transition from a LTD to a PLC is a complex process with many legal requirements and involves undergoing stock market flotation.

Answer 148

Promoting the brand name of a corporate entity, as opposed to specific products or services, Nestle, Unilever, BBC.

Answer 149

An example of corporate branding where retail outlets assign their corporate branding to a range of goods and services. Tesco finest, Essential Waitrose.

Answer 150

Easily recognised and operating worldwide. These brands are based on familiarity, availability and stability. Ikea, Mcdonald's, Pepsi, Coca-cola, DHI.

Answer 151

- Adds significant value (from customer point of view) - Able to charge higher prices and demand is more price inelastic. - Builds customer loyalty and aspiration.

Answer 152

1. USP 2. Advertising 3. Sponsorship 4. Social media

Answer 153

How a business can gain a competitive advantage by being the only business in the market to offer that product or service.

Answer 154

+ Differentiates brand from competition. + Enhances brand image. + Can charge higher prices.

Answer 155

- May not be a market for USP. - New product, therefore sales might not meet expectation. - Expensive to create, will take time to break even.

Answer 156

- The goal of advertising is to focus attention on what sets a business apart from others. - Advertising communicates the functional message of the brand and also any symbolism or values attached to the brand that the consumer might identify with. - The more the consumer identifies, the more persuasive the advertising is and the more likely that the consumer will purchase.

Answer 157

+ Potential to go viral (ad being shared by people) + Can communicate desired message/values. + Target demographics (target market)

Answer 158

- Can be very costly. - Ad may cause negative PR if not appropriate. - Consumers may interpret ad in a different way than intended.

Answer 159

Association of a product with a popular celebrity or sports person and increase sales and the profile of the product.

Answer 160

+ Encourages fans of celebrity to purchase. + Reaches different consumer base - those following celebrity. + Potential for wide reach. + Find celebrities that match values.

Answer 161

- Brand subject to celebrity actions - negative actions can cause bad PR. - Some celebrities cost a significant amount.

Answer 162

- Hashtags on twitter are a way of alerting customers following a popular topic that your brand has association with it. Have a look at today's trending hashtags, if these can be added to the tweet then they attract attention to the product. - Events - businesses can take photos and hashtag in some popular events e.g. World Cup football or Olympic Games that attract a huge following. Social media is a way of; - Communicating - Adding and building trust. - Interacting with customers. - Having accountability e.g. dealing with customer complaints. - Providing value in a fun and creative way through daily content, apps, videos, contests and competitions.

Answer 163

+ Very cheap, if not free. + Associate your brand with relevant trends. + Wide coverage.

Answer 164

- Ignored easily. - Saturated market makes it difficult to stand out.

Answer 165

1. Social media 2. Viral marketing 3. Emotional branding

Answer 166

Refers to the practice of using emotions of a consumer to build a brand. - Designed to appeal to a customers emotion, human need or perceived emotion. - Aims to develop a 'love affair' between a consumer and a brand (encouraging brand loyalty).

Answer 167

A strategy that encourages people to pass on messages to others about a product or service electronically. - Uses social media and online platforms. - Aims to increase brand awareness or to achieve other marketing objectives.

Answer 168

The approach which a business decides on for setting the price of its products or services.

Answer 169

1. Cost plus pricing. 2. Price skimming. 3. Competitive pricing. 4. Penetration pricing. 5. Psychological pricing. 6. Predatory pricing.

Answer 170

Involves adding a certain percentage to the average total cost of the product. Many businesses set their prices by adding 10% to the cost. This is a 10% mark up. Example: Mercedes calculates how much it costs to produce their cars, then adds on a percentage to crest their profit margin. Cafe’s and food chains.

Answer 171

+ Always leads to profit per unit. - Doesn’t consider outside environment - competitors could price themselves lower.

Answer 172

Charging a very high initial price for the product and then lowering it. Example: iPhone - highly priced upon launch, however price falls as new models are released and demand falls.

Answer 173

+ Initial high priced to help recover R&D costs, - Customers may be put off by high price.

Answer 174

+ Initial help prices to help recover R&D costs. - Customers may be put off by high price.

Answer 175

Charging about the same as, a little than, the prices of competing products. Examples: Supermarkets, Apple vs Samsung

Answer 176

+ Reduction in price can lead to sales uplift and an increased number of customers. - Competitors could price themselves lower.

Answer 177

It is used to make the price seem more attractive than it actually is by rounding it down. Example: Supermarkets £1.99 instead of £2.00

Answer 178

+ Increased sales. - Reduction in profit margin due to psychological gain. Could be earning more revenue with higher price. - Doesn’t guarantee customers will purchase product/service.

Answer 179

It is used to enter a new market. A lower price than the competition is set, to try and persuade customers of existing products to give the new product a try, in an attempt to gain market share. Example: Netflix, Spotify, Disney plus, Apple Music.

Answer 180

+ Quick gain in market share. - Lower profits per sale. - Can impact perceived quality/brand reputation. - Competitors may reduce prices making it difficult to justify increasing yours.

Answer 181

It is a tactic used by a dominant business to reduce competition. Prices are set at a very low level, even below the costs of production. It is intended to drive competitors and new entrants out of the market. Example: Illegal under the competition laws of most countries but it is very difficult to prove.

Answer 182

+ Drive competitors out the market. - Illegal. - Short term loss.

Answer 183

• Number of USP’s / amount of differentiation. • Price elasticity of demand - price in elastic products can raise their prices and gain revenue. • Level of competition in the business environment. • Strength of brand - customers will be brand loyal and therefore more price inelastic. • Stage in the product lifecycle - in the launch stage prices can be higher if the product is exclusive - in later stages price falls as competition increases. • Costs and the need to make a profit.

Answer 184

• If a product is price elastic, the demand will change based upon changes in price. • If a product is price inelastic, the demand will not change based upon changes in price.

Answer 185

Trends that relate to the social and cultural values and practices within a society. These are long term trends that explain why people behave the way they do.

Answer 186

• Online sales (e.g. online travel agencies). • Price comparison websites.

Answer 187

• Online sales offer customers convenience and 24/7 accessibility Retailers have shifted their focus to online sales and adjusted their pricing strategies. • One way that pricing has changed to reflect this trend is through the use of dynamic pricing. • Retailers can adjust prices in real-time based on factors such as demand and competition. Prices are higher when supply is lower and vice versa. • Retailers may also offer different prices for online purchases compared to in-store purchases to incentivise customers to shop online which may mean the retailer requires fewer physical stores.This will reduce the retailer's costs

Answer 188

• Retailers have had to adjust their pricing strategies to remain competitive in an online marketplace where customers can easily compare prices e.g www.comparethemarket.com. • Pricing has changed to reflect the rise in price comparison through the use of price-matching policies. • Retailers now offer to match the prices of their competitors to prevent customers from switching to a competitor with a lower price. • Retailers may also use pricing algorithms to monitor the prices of their competitors and adjust their prices automatically.

Answer 189

Concerned with getting the products to the right place for consumers and at the right time.

Answer 190

The route taken by the product as it moves from the producer to the customer.

Answer 191

Organisations that take raw materials or components and process them into finished or semi-processed goods.

Answer 192

Buy large quantities of supplies and sell them on in smaller quantities. They act as an intermediary between manufacturers and retailers and consumers.

Answer 193

An organisation that sells goods and services to the general public or end user.

Answer 194

The end user of a product of service. They are at the end of the channel of distribution.

Answer 195

Producer —> Consumer

Answer 196

Producer —> Retailer —> Consumer

Answer 197

Producer —> Wholesaler —> Retailer —> Consumer

Answer 198

+ Producers benefit from maximising the revenue they keep by not having to share with wholesalers or retailers. + Customers may also benefit from getting cheaper goods and fresher produce. - May not be available at outlets for customers to see.

Answer 199

+ Enables producer to directly control the supply and marketing of their products via limited and regulated outlets. - Restricts competition and choice for the consumer.

Answer 200

+ The producer can concentrate on production and does not have to worry about dealing with many different retailers. + It also saves on storage and warehousing costs for the producer. - The wholesaler also reduces the profit margin for the producer as they also take their share from profit.

Answer 201

- Choice of intermediary: are you able to negotiate with a retailer? - Multi channel or one channel? - Desired control over channel: e.g. who decides price, promotion, packaging? - Nature of the product - would you distribute a luxury product through a wholesaler. - Target market: does your chosen outlet reflect where your target market are? - Size of the business: smaller firms are unable to gain distribution in retailers need to go through wholesalers in order to achieve sales. - Personalisation - Infrastructure available: able to setup and run an e-commerce business. - Business growth: as demand increases, customers expect products to be more available.

Answer 202

- Online distribution - New music, films can call be accessed via the internet without physical copies. - Product to service - This has led businesses to change from selling physical, tangible products to providing a service e.g. downloadable materials.

Answer 203

A model showing the lifespan of a product’s sales from launch to being taken off the market.

Answer 204

A model showing the lifespan of a product’s sales from launch to being taken off the market.

Answer 205

Introduction Growth Maturity Decline

Answer 206

• Can be used to aid decision making. • Allows businesses to understand how each stage influences its marketing mix/plan. • A visual interpretation of the life cycle of a product. • Model is flexible and can be used over different time spans.

Answer 207

• Can be considered as being overly simplistic. • Products may not always follow model e.g. rapid growth into decline. • Doesn’t give any reasons why things happen.

Answer 208

Ways in which a business modifies a product to appeal to more customers and maintain sales in maturity. - Extends maturity. - Increases sales. - Differentiated product not new product. - Appeal to new segment.

Answer 209

• Change the image. • Change the name. • Change the size. • Change packaging. • Moderated/improved product/flavour. • New use for the product. • Change the advert campaign. • Target a new segment. • Increase usage.

Answer 210

The range of products that a business sells.

Answer 211

The total a market has either increased or decreased based upon either value or volume. New-Old/Old x 100

Answer 212

This is the proportion of total market sales that a firm has. Sales of one firm/Total market sales x 100

Answer 213

A tool to analyse a product's market share and growth within a market.

Answer 214

Rising star Holding - High sales revenue. - Fierce competition. - Needs heavy promotion/improvement. - This product may be in the growth phase of the product lifecycle.

Answer 215

Problem child Building - Low sales revenue. - Fierce competition. - Needs heavy promotion/R&D - Low demand. - This product may have just been launched and is building its customer loyalty.

Answer 216

Cash cow Milking - Established products. - Less threat from competition. - Little promotion needed. - Products are reaching maturity of their product lifecycle but still have customer loyalty.

Answer 217

Dog Divesting - Poor profits. - Get rid of them or improve them. - Products may be in the decline phase of their product lifecycle.

Answer 218

- Identifies where each product is positioned in the market. - Assess when is the right time to launch new products/withdraw products. Businesses should have products evenly distributed through the matrix; ensures the business is developing new products at the right time.

Answer 219

- Only uses market share and growth to assess the strengths and weaknesses of a product portfolio. - Current market share information tells us very little about the prospects for the future. - Costs are not considered for a product, therefore high market share does not mean high profits for the business. - Can be quite subjective - different opinions about where a product sits.

Answer 220

Dog = Decline stage Problem child = Introduction or growth Rising star = Maturity Cash cow = End of maturity

Answer 221

A market where customers in many countries have specific needs and wants that are not satisfied by mass market products or services.

Answer 222

- Small market in each country, but the combination of all the countries together make enough demand to make the business profitable. - A global market niche is a subset of a global market. - Highly specialised and is characterised by very loyal customers and premium prices.

Answer 223

- Adapt to cultural differences. - Specialist expertise developed. - Different adoption of technology. - Premium/luxury demand. - Distinctive branding. - Specialist distribution.

Answer 224

A range of different societies or people of different origins, religions and traditions all living and interacting together.

Answer 225

- Economic development - disposable incomes, health and education standards. - Language. - History and traditions. - Religious and social norms. - Weather and climate. - Attitudes to "outsiders". - Legal systems.

Answer 226

Factors that can prevent or stop newcomers into the market or industry sector and so limit competition. High start up costs, extra regulation hurdles.

Answer 227

+ Less competition. + Greater customer loyalty. + Prices are likely to be higher and therefore profits may be greater. + Risk may be reduced. + Specialist products reduce price elasticity of demand and premium prices may be possible.

Answer 228

- Some global economies of scale may not be achievable as each market will need individual attention. - Co-ordination and communication may be more difficult across differing brands and markets. - Will need to conduct market research - time consuming/costly.

Answer 229

The adaptation of a marketing strategy to target all markets on a worldwide scale. • The traditional marketing mix or 4ps is used with the aim of sending an identical message to all countries. • This will have to be adapted e.g. in terms of language.

Answer 230

+ Economies of scale in production and distribution. + Lower average marketing costs. + Power in the market as brand is known. + Consistency in brand image. + Uniformity of marketing practices.

Answer 231

- Differences in consumer needs, wants an usage patterns. - Differences in consumer response to marketing elements. - Differences in brand and product development and the competitive environment. - Differences in the legal environment, some of which may conflict with those of the market.

Answer 232

The adaptation of a global marketing strategy in order to meet the requirements of local geographic markets.

Answer 233

• Local retailers more comfortable with local suppliers. • Likely local production and possibly lower costs. • Tailoring to local taste/habits - optimise market share, improve reputation (local company helping local economy).

Answer 234

• Time consuming and expensive. • Needs informative expertise. • R&D and market research costs, • Strong domestic competition.

Answer 235

A framework that can be used to consider marketing approaches used by global firms.

Answer 236

Where the business originated from.

Answer 237

Where the target market or subsidiary of the business is based.

Answer 238

Where the promotion of the product is undertaken based on the beliefs of the home nation of the business and is presented to the host nation as such. - Decision making is centralised and key personnel from headquarters are sent to see oversee marketing operations in other countries. - Restricts promotional prospects. - Contentious if offends local population. - Ignores local customs and culture.

Answer 239

Where the promotion of the product is undertaken based on a global or worldly point of view. Therefore, it is not based on the perspective of either the home or host nation but recognises differences in national markets. - Marketing focuses on the benefits for the business on a global basis. - Recognises difference in global markets: aims to build a global brand. - Products are marketed in foreign countries based on whatever is required for the business to succeed.

Answer 240

Where the promotion of the product is undertaken based on the beliefs of the nation in which the business in operating. - Suggests that values of nation being targeted are important. - Products are marketed in foreign countries based on foreign nation's values. - Decision making is decentralised and key personnel need to be recruited from the nation being targeted. - Recruitment might be difficult and there is a loss of control of marketing operations.

Answer 241

- Target market. - Competitors actions. - Time. - Type of product. - Target market. - Culture: language, religion.

Answer 242

A marketing panning model that helps a business determine its product and market growth strategy.

Answer 243

Existing products in existing markets • Consolidation, withdrawal, do nothing. 4 main objectives: • Maintaining/increase market share (pricing, advertising, sales promo, personal selling). • Securing dominance. • Restructuring mature markets (driving out competitors). • Increasing usage (loyalty).

Answer 244

New products in existing markets. • Suitable where differentiation aids competitiveness. • Modify, revamp or completely new. • Emphasis on R&D/innovation. • Customer insight and trends. • Emphasis on being first to the market.

Answer 245

Existing products in new markets. • New geographical markets. • New product aspects/packaging/distribution channels. • Different pricing policies to attract new markets.

Answer 246

New products in new markets. • Riskiest due to little/no competition. • Needs clear idea of gains & accurate assessment of risks. • Potential high returns. • Could be achieved through integration/growth.

Answer 247

The dominant set of behaviours, values, beliefs and thinking patterns we learn as we grow and develop in our social group.

Answer 248

• Time differences. • In some differences it may be expected to call people by their first name. • Give gifts: bigger gifts for senior members, equal gifts for employees. • Colour implication: black/white not used in business; red means luck. • Holidays • Language barriers. • Local knowledge • Cultural differences (sense of humour). • Body language.

Answer 249

• Establish social trust first. • Value personal relations and good will. • Agreement by general trust. • Negotiations slow and ritualistic.

Answer 250

• Get down to business first. • Value expertise and performance. • Agreement by specific, legalistic contract. • Negotiations efficient as possible.

Answer 251

As part of these cultural differences people have different tastes. Taste is subjective and dependent on the individual.

Answer 252

Occur when the message being portrayed by the business is taken to mean something else by the potential market.

Answer 253

Filling job vacancies by defining the job, attracting suitable candidates and selecting the best suited to fill it. Recruitment = Attracting potential candidates. Positive process. Selection = Choosing the ideal candidate. Negative process

Answer 254

1. Business expansion - New markers, new products, increasing sales. 2. Existing employees leave - to work with competitors, retirement, sick leave, maternity leave. 3. Business needs employees with new skills. 4. Business is relocating.

Answer 255

1. Identify the vacancy. 2. Job analysis. 3. Job description. 4. Person specification. 5. Advertising the vacancy - company newsletter, e-mail, meetings. Newspaper, speciality magazines, online, jobsite, job centre. 6. Receiving applications. 7. Shortlisting and references. 8. Assessing candidates. 9. Offering the position.

Answer 256

Identifies the duties and responsibilities required.

Answer 257

A recruitment document that outlines tasks and responsibilities of the job.

Answer 258

A recruitment document that outlines characteristics and qualifications of the person required to do the job.

Answer 259

+ Can help identify whether the recruit is the right sort of person. - Recruiters can be overly influenced by a candidate’s appearance and social skill.

Answer 260

+ Opportunity to examine skills of team working and leadership. - May allow someone who is quite but able to slip through the net.

Answer 261

- Costly activity for business: Lost output from replacing an employee. Logistical cost of running a recruitment and selection process. - No guarantee will find the right employee. - Cost of advert. - Cost of agency fees for a temp to cover position until it's filled. - Cost of wage of new employee. - Loss of management time. - Loss of productivity whilst new employee is being inducted.

Answer 262

The process of equipping employees with the skills and knowledge to carry out their job effectively. Training can fulfil different roles within a business: - Incentivises applicants to apply for a job. - Result in trained employees seeking alternative jobs elsewhere. - Lead to promotions internally as skills levels increase.

Answer 263

1) On the job = Employee learns in the workplace from experienced employees. 2) Off the job = Any form of education that takes place outside of the workplace. 3) Induction = Introductory training for employees new to an organisation.

Answer 264

- Ensure they have skills needed to conduct their job effectively. - Provide a sense of motivation - increasing skills level. - Reflects externally - business is viewed as a desirable place to work for - increases candidate pool for recruitment and selection.

Answer 265

1) Demonstration/instruction = Showing the employee how to do the job. 2) Coaching = A more intensive method of training that involves a close working relationship between an experienced employee and the trainee. 3) Job rotation = Where the trainee is given several jobs in succession, to gain experience of a wide range of activities. 4) Projects = Employees join a project team - gives them exposure to other parts of the business and allows them to take part in new activities.

Answer 266

1) Day or part time attendance at college. 2) Professional development courses or conferences. 3) Online training/distance learning. 4) Day release - employees take time off work to attend a local college or training centre. 5) Block release courses - several weeks at a local college. 6) Sandwich courses - employee spends a longer period of time at college before returning to work. 7) Self study, computer-based training. 8) Sponsored courses in higher education.

Answer 267

+ Tailored to the business’ ways of working. + Motivating as employees are hands on from the start. + Saves time and money of sending people out. + Trainee is faced with real-life scenarios. + No need to pay a professional to train others, therefore cheaper. - Risk of expensive errors, e.g. customer service. - Loss of productivity on equipment while training is carried out. - Can be distracting to other employees. - Potential to pick up bad habits.

Answer 268

+ Employees learn new skills and knowledge outside of work place, bringing fresh ideas and perspectives into workplace. + Trainer is more likely to provide high quality training, as they will be a skilled expert in this area. + More expensive so employees may feel more valued and therefore motivated and loyal. - Expensive. - Employees may miss work, impacting productivity. - Training may not be directly applicable to employees job role or needs of the firm.

Answer 269

Creates a formal hierarchy that establishes who is accountable to whom throughout an organisation (people and management). Shows: • Authority and responsibility. • Job roles and titles. • Accountability. • How communication flows.

Answer 270

The number of layers of management or supervision in the organisation structure. • Employees are ranked due to their status and authority.

Answer 271

The number of employees for whom a manager is responsible for.

Answer 272

• Gives subordinates the chance for more independence and responsibility. • More appropriate if labour costs are significant - reduce number of managers.

Answer 273

• Allows for clear supervision of employees. • More layers in the hierarchy may be required. • Helps more effective communication. • Jobs will be very specialised.

Answer 274

The lines of authority within a business. • This is the flow of information, power and authority through an organisation.

Answer 275

+ More opportunities for promotion. + Closer supervision of employees. + Specialist managers. - Slow decision making. - Increases costs. - Messages difficult to be passed down.

Answer 276

+ Quicker decision making. + Staff more motivated due to greater responsibility and independence. + Messages easier to pass down. + Reduces costs. - Limits career progression. - Managers may become stressed. - Managers cannot keep track of employees easily.

Answer 277

Keep decision making firmly at the top of the hierarchy (amongst senior management, head office, central budget).

Answer 278

Decision making is spread out to include more junior managers in the hierarchy, as well as individual business units or trading locations.

Answer 279

+ Easier to co-ordinate and control from the centre. + Economies of scale and overhead savings easy to achieve. + Quicker decision making - easier to show strong leadership. + Consistency across the business - easier to implement certain policies and practices.

Answer 280

- Standardised approach may not work in all locations - junior managers are likely to respond much closer to customer needs. - Demotivate junior managers. - Customer service misses flexibility and speed of local decision making.

Answer 281

+ Decisions are made closer to the customer. + Better able to respond to local circumstances. + Improved level of customer service. + Motivates junior managers. + Good way of training and developing junior management.

Answer 282

- Decision making is not necessarily strategic. - Harder to ensure consistent practices and policies at each location. - Diseconomies of scale. - Harder to achieve tight financial control.

Answer 283

Individuals work across teams and projects as well as within their own department or function.

Answer 284

1) Size of the business. 2) Type of business. 3) Competitive environment. 4) Management and leadership style.

Answer 285

Employee dismissed because of break of contract or other unacceptable behaviour or performance. May be considered unfair and subject to legal claim of employee. Worker ay be dismissed or fired from a job for: - Absenteeism. - Gross misconduct (showing up drunk). - Theft of company money or property. Worker is not entitled to a payout from the business if dismissed.

Answer 286

Employee looses job because job is no longer required by the business. Requires consultation and redundancy payments. - Workers job no longer exists possibly due to lack of business or restructuring. - Redundancy is sometimes voluntary - where some staff close to retirement take voluntary redundancy to gain a payout. - Compulsory redundancy is where members of staff must leave a job.

Answer 287

Action taken by employees of a company as a protest.

Answer 288

1. Work-to-rule = Employees follow the strict conditions of their employment contract - no voluntary overtime, no participation in supporting activities. 2. Overtime ban = Employees refuse to work additional hours. 3. Go-slow = Employees work at the slowest or least productive pace that is allowable under their employment contracts. 4. Strike

Answer 289

- Lost sales and profits from lost output. - Damage to customer satisfaction. - An internal distraction for management and the business. - Damaged relationship with staff may adversely affect motivation, productivity.

Answer 290

- Lost pay - Potential loss of jobs if the action results in action to cut costs. - Disruption and potential tension within working environment following industrial action.

Answer 291

- Regular consultations with a trade union - pick up problems before they escalate. - Staff forum and joint working group to pass on information and collect ideas from workers and consult with workers. - An employee consultative body to discuss major issues before they arise. - Team and group meetings and feedback sessions.

Answer 292

A group of employees representing a workforce in discussions with their employers.

Answer 293

An organisation of workers established to protect and improve economic position and working conditions of its members. 1) Represent. 2) Negotiate.

Answer 294

Worker and manager sit face to face to discuss terms and conditions of the workers contract.

Answer 295

A representative of all workers meet with the manager to discuss terms and conditions of employment.

Answer 296

Treat employees simply as a resource of the business. - Identify workforce needs of the business and recruit and manage accordingly. - Short term changes to employee numbers. - Minimal communication. - Pay - enough to recruit and retain enough staff (minimum wage). - Little employment or delegation. - Taller organisational structures. - Strict autocratic leadership style.

Answer 297

+ Cost-effective workforce. + Quicker decision making focused on senior managers. - High absenteeism and staff turnover. - Less successful recruitment.

Answer 298

Treat employees as the most important resource in the business and a source of competitive advantage. Employees are treated as individuals and their needs are planned accordingly. - Strategic focus on long-term planning of workforce needs. - Regular communication. - Competitive pay with suitable performance related rewards. - Employees are empowered and encouraged to seek delegation and take responsibility. - Flatter organisational structure. - Suits democratic leadership style. - Appraisal systems focused on identifying and addressing training and other employees development needs.

Answer 299

+ Rewards employee performance and motivates staff more effectively. - Cost of workforce may leave a business at a competitive disadvantage.

Answer 300

Working arrangements where there are a variety of options offered to employees in term of working time, location and the pattern of working. - Part time. - Homeworking. - Outsourcing. - Flexible hours. - Multi skilling.

Answer 301

- Cost savings because less office space needed and offering part time to cover busy periods. - Multi-skilling means less staff needed at some times as one person can take on many roles. - Offering part time or job share can reduce need to make redundancies so can cope with changes in the economic cycle. - Better morale and productivity. - Access to a larger poole of workers making it easier to recruit. - Strategy to retain staff. - Less travel time to and from work, increasing worker productivity.

Answer 302

- Admin work involved in setting up and running flexible working. - Potential loss of customers if key employees reduce working hours. - Lower employee productivity. - Inability to substitute for certain skills if certain employees are missing. - Managers find it difficult to manage or administer flexibility.

Answer 303

Where staff are allowed to carry out of a variety of tasks rather than specialise. + Enables greater use of job rotations which benefits motivation. - Puts a greater requirement on training.

Answer 304

Where staff are on a contract with a fixed length e.g. project work, contractors or covering sick/maternity leave. + Often have less rights such as sick leave, and hiring and firing is easier so could be cheaper. - Staff may not be fully committed. - Staff may not understand the business aims and culture.

Answer 305

Delegating one or more business processes to an external provider, who then owns, manages and administers the selected process to an agreed standard. + Enables business to focus on its primary function. + A contractor may have more expertise and greater economies of scale in function. - Outsourced businesses don't share companies culture, vision and goals.

Answer 306

Offshoring = Work is done overseas by your own business. Outsourcing = Someone else does the work for us.

Answer 307

The action or ability of leading a group of people or an organisation. - Inspire people. - Build relationships. - Have followers. - Take risks. - Innovators.

Answer 308

The process of dealing with or controlling things or people. - Enact the plan. - Use their authority. - Manages risks. - Have subordinates. - Problem solver. - Organises, co-ordinates. - Controls and manages the work/workload of workers.

Answer 309

- Personal values. - Manager's experience. - Confidence/trust in subordinates. - Feelings of security. - Nature of the business problems. - Type of organisation (size, structure). - Skills and experience of subordinates.

Answer 310

Leader makes all the decisions. - Focus of power is with the manager. - Formal systems of command and control. - Communication is top-down and one-way. - Use of rewards and penalties. - Very little delegation. e.g. factories, fast food, armed forces and police. Direct orders are given and are to be followed.

Answer 311

- Changes in society's values. - Pressure for greater employee involvement. - Better educated workforce. - Focus on need for soft HR skills.

Answer 312

Leaders encourage participation in decision making. - Focus of power is more with the group as a whole. - Emphasis on delegation and consultation. Democratic persuasive: Leader has made deacon and then persuades subordinates into the best option. Democratic consultative: Leader consults with subordinates then makes a decision.

Answer 313

Leaders allow employees to make their own decisions. - Leader has little input into day-to-day decision making. - Conscious decision to delegate power. - Managers/employees have freedom to do what they think is best.

Answer 314

Leader makes decisions but takes employees point of view into consideration. - Leader decides what is best for employees. - Akin to a parent/child relationship. - Links with mayo - addressing employees needs.

Answer 315

Entrepreneurship is a set of attributes that an entrepreneur process and practices in starting their business. Leadership is the process of influencing people and providing an environment for them to achieve their organisational objectives.

Answer 316

1) Learning to delegate. 2) Trusting others. 3) Listen to others. 4) Have an open mind. 5) Be more proactive. 6) Develop emotional intelligence.

Answer 317

- Empower staff. - Motivate workers. - Maintain high levels of quality. - Increase sales. - Set good culture in business.

Answer 318

- Improves relationships. - Increase quality of work. - Improves communication. - Trust is 2 way.

Answer 319

- Open discussion will create more ideas/opinions. - Better chance to learn. - Different ideas = more choices.

Answer 320

- Involving staff in decision making = more motivation. - Greater productivity. - Feedback can improve the level of work/quality of work.

Answer 321

- Entrepreneurs are often used to taking quick actions and making decisions on the fly. - As a leader, it's important to take a more strategic and measured approach to decision-making.

Answer 322

- Leaders need to be able to understand and manage their own emotions, as well as the emotions of their team members. - It's important in fostering a sense of wellbeing in staff and keeping them motivated.