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Higher Business Management > Prelim > Flashcards

Prelim Flashcards

1
Q

What is a functional grouping?

A

This involves grouping an organisation into departments called functional areas, based on skills and experise

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2
Q

Name two advantages of functional grouping

A

Staff with similar skills and expertise are together, allowing for specialisation. Each department will become excellent at what they do

Staff know who to report to and who to get guidance from

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3
Q

Name two disadvantages of functional grouping

A

The organisation can become too large to manage if functional departments grow rapidly

Functional grouping is often coupled with tall and centralised management structure. Communication can be slow.

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4
Q

What is location grouping?

A

This is grouping and organisation into geographical divions. Each division will operate to serve customers in that particular location.

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5
Q

Name two advantages of location grouping

A

Each division can meet the needs of the local markets

The business can react quickly to changing external factors quickly.

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6
Q

Name two disadvantages of location grouping

A

Duplication of resources.

Divisions may compete against each other

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7
Q

What is customer grouping?

A

Grouping of resources that deal with a different type of customer.

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8
Q

Name two advantges of customer grouping

A

Each group can tailor it’s product to suit the customers requirements

Customer loyalist can build up over time.

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9
Q

Name two disadvantages of customer grouping

A

Duplication of resources.

Only suitable for large businesses.

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10
Q

What is an internal recruitment?

A

Where you advertise for the job within the business or organisation.

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11
Q

What is an external recruitment?

A

where you advertise for the job without the business or organisation.

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12
Q

Name two advantages of internal recruitment

A

The vacancy can be filled quickly

The employee will know the business and won’t have to be taught it.

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13
Q

Name two disadvantages of internal recruitment

A

The business or organisation will have to fill the other person’s job when they’re promoted.

applicants are very limited

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14
Q

Name two advantages of external recruitment

A

The new employee will bring new skills and expertise into the organisation or business.

There is a wider pool of candidates

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15
Q

Name two disadvantages of external recruitment

A

Candidates don’t know the organisation so they will have to be taught their way around, this will lose valuable time.

Might take longer to choose as there a wider pool of candidates.

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16
Q

What is an application form?

A

An application form is a document that is produced by the employer. It contains a selection of question that can help the employer find out about their skills, experience and qualities.

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17
Q

What is a CV?

A

CV is a document listing a persons work experiences, qualifications and person experiences.

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18
Q

What is an interview?

A

All interviews are designed to compare the applicants.

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19
Q

Name two advantages of an interview

A

Finds how the applicants react under pressure.

Indication of the applicant’s personality and character.

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20
Q

Name two disadvantages of an interview

A

Some applicants can train specifically for interviews - might not be the best person for the job.

Highly stressful for some. Might be good for the job but won’t show up well to the panel/ manager.

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21
Q

What is testing?

A

This provides additional information about the applicant.

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22
Q

Name two disadvantages of testing

A

Time consuming

Applicants put under too much pressure

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23
Q

What is an assessment centre?

A

This is to see a large of number of applicants at the same time..

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24
Q

Name two advantages of assessment centre

A

Allows an organisation to really scruitinise applicants over a long period of time.

Access how applicants interact with others.

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25
Q

Name two disadvantages of an assessment centre

A

A venue will need to be hired. - this can be expensive

Several managers will need to be sent to the centre to conduct and supervise the tests.

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26
Q

What is the two methods of research?

A

Desk and field

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27
Q

What does desk research do?

A

Secondary

It’s information that has already been gathered

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28
Q

Name a way of desk research

A

Internet
Government publications
Newspaper/report

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29
Q

What is a disadvantage of using a newspaper/report

A

It could be bias
Factually incorrect
Out of date

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30
Q

Name two advantages of desk research

A

Timely - quick to gather information

Cost effective - doesn’t require trained or paid interviewers

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31
Q

What is field research

A

Finding out brand new information suitable for the business’ exact needs

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32
Q

Name two advantages of field research

A

It won’t have any parts missing

Accurate - information should be validated

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33
Q

Name a disadvantage of field research

A

No cost effective - requires trained and paid interviewers or expensive research companies

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34
Q

What is a postal survey?

A

Questionnaires being sent out by mail to people to complete themselves and return

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35
Q

Name two advantages of using postal surveys

A

It is relatively cheap to send large numbers of surveys

No interviewer bias

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36
Q

Name two disadvantages of using postal surveys

A

Response rate is less than 10%

No opportunity for anything to be clarified

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37
Q

What is a telephone survey?

A

People who are contacted by telephone and asked a number of questions

38
Q

Name two advantages of using a telephone survey

A

Large numbers can be contacted across the country

Less expensive to carry out

39
Q

Name two disadvantage of using a telephone survey

A

People might not want to participate - might be an unsuitable time

Long surveys take up time. Short surveys are easier over the telephone

40
Q

What is an online survey?

A

People answer a number of questions that are displayed on a website

41
Q

Name two advantages of using an online survey

A

Can be sent to large numbers with using a link

Don’t need to spend anything - cost effective

42
Q

Name two disadvantages of using an online survey

A

Relies people to have an Internet access

No personal contact

43
Q

what is diversified product line

A

Involves having products to sale across completely different market segments

44
Q

What is the minimum wage act of 1998

A

It makes it illegal to pay an employee below a certain amount per hour

45
Q

What is the employee rights act 1996 and what must it contain

A

An employee must be given a written contract. It must contain rate of pay, hours, holidays.

46
Q

What type of contracts can you get?

A

Permanent
Temporary
Fixed

47
Q

What is the health and safety at work act 1974

A

All employers must ensure the health, safety and welfare of their employees as far as possible.

48
Q

What is grievance?

A

A grievance is a complaint by an employee again their employer. It could be the way they’ve been treated.

49
Q

What can employee do if they feel unhappy with the organisation?

A

They can involve ACAS and eventually an industrial tribunal

50
Q

What should happen before a grievance hearing?

A

Give the employee a notice so they can prepare their case.

Carry out a full investigation.

51
Q

What is discipline?

A

A disciplinary procedure is a process for dealing with pereceived employee misconduct.

52
Q

What should the employer put in place?

- discipline

A

They should put a disciplinary procedure in writing and make it easily avaliable to all staff

53
Q

What should the disciplinary procedure have ?

A
  • what kind of performance and behaviour might lead to discipline.
  • what action the employer will take
  • who to report to
54
Q

What are the steps of a disciplinary procedure?

A
  1. letter with the issues.
  2. a meeting
  3. a decision.
  4. chance to appeal.
55
Q

Name three uses of ratio analysis

A

To compare the current years Performance with that of the pervious

To compare their performance with those of a similar organisation

To interpret information in order to identify why differences occur and how best to improve it

56
Q

Name three limitations of ratio analysis

A

Information contained in final accounts is historical

Comparisons must be made with firms with a similar size and in the same type of industry

Finding do not reflect the implications or effects of new polices

57
Q

What is ratio analysis measures
profitability
liquidity
efficiency

A

Profitability - can control its spendings

Liquidity- ability to pay off their short term debts

Efficiency - to make good use of their resources

58
Q

Name four advantages of e-commerce

A

Opens the market to customers nationally and internationally

Enables smaller companies to compete with larger companies

Reduces in staffing/or high street stores thereby reducing costs.

Provides he option to offer 24 shopping.

59
Q

Name four disadvantages of e-commerce

A

Stiffer competition. Competing with shops in the next town

Staff reductions - increased competition with local companies might resulted in work force.

Cost of restructuring- move to e-commerce might not be smooth and will require a degree amount of investment

Costumer concern - costumes may not be comfortable shopping online.

60
Q

What are the four distribution methods?

A

Road
Rail
Air
Sea

61
Q

What are two advantages of distribution on the road

A

Generally quick and short

Allows door to door delivers

62
Q

Name two disadvantages of distribution on the road

A

Delays on the road and weather can hold it up m

Fuel costs can push up the costs

63
Q

Name two advantages of distribution on the rain

A

Some businesses have private rails.

Useful for heavy goods

64
Q

Name two disadvantages of distribution on the rails

A

The rail terminal is generally not the final destinations

Not suitable for some locations

65
Q

Name two advantages of distribution of air

A

Ideal for long distances

Quick delivers can be made overseas

66
Q

Name two disadvantages of distribution of air

A

The airport is not the final destinations

This could cost a lot to where it needs to go

67
Q

Name an advantages of distributions of sea

A

Useful for importing exporting heavy or bulky products

68
Q

Name two disadvantages of distribution of sea

A

The dock is not the final destinations

A slower method meaning longer delivery times

69
Q

What is cash budgeting

A

It’s a prediction of the flow of cash in to and out of an organisations

Cash budgets need to be completed to help the organisations remain liquid.

70
Q

Name two advantages of cash budgeting

A

To predict a positive cash flow (surplus)
To predict a negative cash flow situation (deficit)
Allow investment during surplus
To allow action being taken during deficit.

71
Q

Technology of finance

A

Reduces Rick of human errors
Can be changed easily
Spreadsheets allows a to budget quickly
Graphs/charts can be created automatically
Records can be emailed and sent for free
Files can be backed up

72
Q

What is just in time stock control

A

It’s a system that aims to get the highest volume of output at the lowest unit cost.

73
Q

Name two advantages of just in time stock control

A

It improves the cash flow in many businesses.

It reduces storage costs
Reduces waste
Not factory space

74
Q

Name two disadvantages of just in time stock control

A

A lot of faith in placed in the reliability and flexibility of supplies

No times for quality control when material arrives

Instead ordering and administration costs

75
Q

What happens after the grievance hearing?

A
  • give employee a copy of the meeting records.
  • might be able to leave some information out. ( certain circumstance)
  • what you want done and reasons
76
Q

What should the employer to legally?

-grievance

A
  • must set out a grievance procedure
  • share it in writing to all employees
    e. g staff hand book
77
Q

What should an employer do ?

-discipline

A
  • Create a disciplinary procedure contact
  • best way to tell if you have done something wrong.
  • explains clearly the improvement needed.
78
Q

What is a dismissal procedure?

A

Referred to firing or sacking.

79
Q

What are the rules of a dismissal procedure?

A
  • employer must set out the disciplinary and dismissal procedure in writing.
  • if they don’t they will pay the employee compensation.
80
Q

What is a bank overdraft?

A
  • Short term

- Facility allows the business to spend more money than whats in their bank account.

81
Q

Name two advantages of a bank overdraft.

A
  • Usually easy to arrange with their bank.

- Allows them to continue spending, even if there is no money in the account.

82
Q

Name two disadvantage of a bank overdraft.

A
  • high interest rates

- must be repaid

83
Q

What is a trade credit?

A
  • Allows a business to buy goods from a supplier and pay them at a later date.
  • usually at the end of the month
84
Q

Name two advantages of using a trade credit.

A
  • Allows the business to sell stock at a higher price. Earn money before the bill comes in
  • Keeps a business going when cash flow is poor
85
Q

Name two disadvantages of using trade credit.

A
  • Discount for prompt payment is lost.

- suppliers reluctant to continue to offer if a business does not pay in time.

86
Q

What is debt factoring?

A

Business sells it’s unpaid customers invoices to a factoring company.

87
Q

Name two advantages of using debt factoring

A
  • responsibility for collecting the debt is passed on to the factor/
  • cash flow is improved
88
Q

Name two disadvantages of using debt factoring

A
  • has to be sold at a reduced amount

- factoring companies usually only interested in large amount of debt

89
Q

What is a bank loan?

A

When a bank agrees to lend a business money for a specific purpose.

90
Q

Name two advantages of using a bank loan

A
  • can budget for the repayments

- purchase of essential equiptment can be made in advance and paid back over a number of years

Higher Business Management (4 decks)

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