Revsion Quickers Flashcards
Business role in society
Create jobs
Increase tax levels
Businesses create wealth by what?
Adding value as it goes through the production line things are added to the product to make it worth more money
Advantages and disadvantages of a business
A- they create jobs, results to more being spend and higher demand
Dis- environmental impact
Sectors of economy?
Private
Public
Third
What is a private limited company and it’s ad tables and disadvantages?
They are a business that are owned by shareholders and are financed through family and fiends and personal shareholders investments.
A- limited liability, no loss of control, accounts are private
D- shared profit, legal process. Is difficult, limited capital
What is a public limited company?
They are businesses owned by shareholders and run by boards of directors on the behalf of the tax payers.
A- they have large amount of finance, banks trust them, limited liability
d- control is lost, hard to set up, accounts are publicised
Compare LTD to a PLC?
Shares
Accounts
Limited liability
What is a franchise?
When a franchiser gives permission to a franchiser to use the businesses logos and products in another branches in return of a percentage of the franchises profit.
Advantages and disadvantages for a franchiser?
A- profits %, new markets, failure split
D- could have made more proof it’s itself, training and support, reputation
Advantages and disadvantages for a franchisee?
A- gets support and training, no advertisement costs, profit is already sure to be made.
D- high amount of capital needed to start up, % of profit is given to franchiser, cannot make large strategic decisions
What is a multinational?
When a businesses operates in more than one country
Advantages and disadvantages of a multinational?
A- new geographical markets, legislation is different in other counties, cost for highly skilled employees are cheaper
D- language barriers, the currency exchange, political state of a counties
What is a local enterprise?
A local social enterprise is a organisation set up to provide goods and services for a profit which then they reinvest into the business to help a good cause
The advantages of this are that governments see this as good so they give government grants to help them expand and help the society
Compare objectives in a public limited company to a public sector organisation?
Plc- maximise profit private sector - maximise services
Plc- maximise customer sat fiction private sector - use taxes wisely
Plc- maximise sales private sector - increase the standard of living
What is a mission statement
A summary of the business’s aims and objectives and they are normally starve tic sections made by senior managers
Methods of growth
Go to booklet
Internal factors
Employees
Managers
Finance
Technology
External factors
PESTEC
3 economic factors
- levels of employments
- Interest rate
- economic state
What is corporate culture?
When a business’s has specific beliefs and values and they are identified with logos mottos and slogans and have many different branches
A- staff settle at new beaches easier, staff know there place, sense of belonging
D- expensive to run group training,
Shareholders influences are?
To make strategic deconstruction impacting the business
Decide the BOD AT annual labour meetings
But and sells shares
Stakeholders? SCEMO
Suppliers Competitors Employees Managers Owners
Conflicts and interdependence?
Owners & customers
Owners & employees
Owners & suppliers
Employees & customers
Types of decision making
Strategic
Tactical
Operational
How can managers see if there decisions have worked out?
Emplify employees
Ask customers
Look at cash flow
Financial information
Role of a manger?
POCCCDM
Plan- this is when the manager will lol an ahead and see if there are any opportunities and make targets
Organise- when the manager sets out targets and aims
Command- tell employees what they need to do to help the business achieve the target
Co- operate- get all the resources for making the target work out
Command- set out specific responsibilities to subordinates
Delegate see if what they are doing is expected to reach the target
Motivate- managers will motivate staff so they will help the bruises achieve their target
SWOT analysis
Identifies the SWOT
Good well planned decisions
Not rushed so more likely to work out
Factors that effect the mangers deviousness making
Skills and knowledge
Under stressful conditions
Policy of the company
Finance
Line relationship?
The relationship between subordinates and senior managers
Lateral relationships
The relationship between individuals with the same level of responsibility
Functional relationship?
The relationship between individuals in the same levels of the hierarchy
Staff relations?
The relationship between people within the organisation and external personal
Span of control?
Is the number so subordinates that the senior managers had control over
Delaying is?
When parts of the hierarchy are added together or taken away to make the business smaller
Out sourcing?
When the business sells parts of the businesses to another trusted organisation to make the businesses smaller and make a profit
Go to structures advantages and disadvantages
Booklet
Four sectors of the Industry?
Primary
Secondary
Tertiary
Quaternary - information services
