Structural Factors

Question 1

What are the structural factors of industry study? (HINT: THINK OMPMQ

Answer 1

• Organizational Structure
• Management of the business
• Production
• Marketing
• Quality COntrol

Question 2

What is a business?

Answer 2

Talks about what a business is.

• Takes input and creates an output (goods and services)
• Performed as efficiently as possible
• Ultimate goal to make profit
• Quality of business depends on the goods being sold.

Question 3

ORGANISATION: What types of businesses are there?

Answer 3

• Government vs Private business
• Sole Trader
• Partnership
• Company

Question 4

ORGANISATION: Advantages of a Sole Trader?

Answer 4

100% of Profit
100% control
More personal with clients
Cheaper
Choose work hours

Question 5

ORGANISATION: Disadvantages of a Sole Trader?

Answer 5

• Business shuts down during holidays or non-working hours.
• Restricted sources of finance.
• Unlimited liability

Question 6

ORGANISATION: Advantages of Partnership

Answer 6

Easy to Establish
Ability to raise funds increased
Combination of skills

Question 7

ORGANISATION: Disadvantages of partnership?

Answer 7

Unlimited liability between all people
Limitations of expansion
Shared profit

Question 8

ORGANISATION: Advantages of Company

Answer 8

• Losses are shared between the group
• Always higher authority (hierarchy)
• Limited liability
• Privacy
• Continuity of business

Question 9

ORGANISATION: Disadvantages of Company

Answer 9

• Harder to establish
• Complex to admin
• Expensive
• Higher compliance required

Question 10

MANAGEMENT: What is a hierarchical structure?

Answer 10

• Works with higher authorities

- Decisions made by certain people affect everyone else

Question 11

MANAGEMENT: What is the flattened structure?

Answer 11

• Uses very few authoritative power’s
• Utilizes group work and teams
• Shorter communication line

Question 12

MANAGEMENT: Why would a business want to change structure?

Answer 12

• Expansion
• Relocation
• Communication adjustments
• Loss of employee’s

Question 13

MARKETING AND ADVERTISING: What 2 types of advertising are there?

Answer 13

• Digital and Non-digital

Question 14

MARKETING AND ADVERTISING: Give an example of digital advertising

Answer 14

• Social networking
• Blogging (education)
• Website ads

Question 15

MARKETING AND ADVERTISING: Give an example of non-digital advertising

Answer 15

• Posters/Flyers

- Events (Eb Expo)

Question 16

QUALITY CONTROL: What is it?

Answer 16

• Processes used to maintain a certain level of quality in a product or service
• Involves testing and examination of products (UPDIT)

Question 17

QUALITY CONTROL: Purpose of quality control

Answer 17

• Ensuring that the products meets a certain requirement or characteristic

Question 18

QUALITY CONTROL: Give an example of quality control

Answer 18

Restaurants: Ensures no contamination of food + Makes sure food is prepared at a specific standard or procedure.

MANUFACTURING: Selects products at random, checks to see if it functions for its purpose. (systematic sampling)

Question 19

ACRONYM FOR STRUCTURAL FACTORS: OMPMQ

–> Oh My Penguin Might Quack

Answer 19

Organisation
Management
Production
Marketing and Advertising
Quality control