SVT CASE STUDY PAPER 1 Flashcards
What is a vision statement?
A general statement on where the business wishes to be in the future and the values it holds; What it wants to become and what it wants to achieve.
What are business sectors?
Are four broad types of business activity:
1. Primary: extracting natural resources.
2. Secondary: Manufacture of products
3. Tertiary: commercial services
4. Quaternary: IT businesses.
What is a monopoly?
Total control over a market.
What is profit?
The money the company has left after paying for all expenses.
What are the leadership styles?
A leader’s methods and behaviours when directing, motivating, and managing others.
What is situational leadership style?
Leaders that adapt its leadership style to the situation (best kind).
What is the autocratic leadership style?
Leadership style where leader takes decisions independently and strict
What is a cultural clash?
When two cultures are incompatible/induce conflicts
What is labor productivity?
Ratio of output in certain time period per workers employed
What are external factors?
Factors that impact a business but that it has no control over (STEEPLE)
What are internal growth strategies?
Increased profit achieved by the use of the company’s own resoruces (ex.: improve products, better marketing, invest in R&D, improve workforce training, expand # of offices) → relatively inexpensive due to use of retained profits
What are external growth strategies?
Growth through:
-Mergers and acquisitions (M&As)
-Joint ventures
-Strategic alliances
-Franchising
What is Acquisition/M&A/Takeover?
Two firms becoming one larger business due to one firm buying the other in a voluntary or hostile takeover
What are income stream?
The various sources from which a business earns money from the sale of goods or the provision of services
What is a public limited company?
Trades shares on the stock market (+ limited liability, easy access to finance/more funds, EOS; - must publish financial reports, less control, potential bureaucracy)
What is the product range?
Are all the types of products that a company sells
What is a family-owned business?
The commercial organization in which decision-making is influenced by multiple generations of a family
What are the methods of motivation?
Motivational Theories (Pink, Adams, Maslow, Taylor, Herzberg), Financial Rewards (Pay, Wages, Commissions, Fringe Benefits, etc.), Non-financial rewards (Job rotation/ enlargement/enrichment)
What are economies of scale?
Reductions in a firm’s unit (average) costs of production that result from an increase in the scale of operations
What is incentive payment?
a type of payment that is made to employees in addition to their normal salaries
What is a flexible working contract?
Temporary and part time contracts
What is recruitment?
the process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, attracting suitable candidates for the job and selecting the best one
What is induction training?
To familiarise new recruits with the systems used in the business and the layout of the business site; usually done before the official first day of work
What is Labor turnover?
measure the rate at which employees are leaving an organisation.
What is offshoring?
the relocation of a business process done in one country to the same or another company in another country
What are dividends?
the share of the profits paid to shareholders as a return for investing in the company
What is a Market share?
the percentage of the total sales in a market that a company’s business makes up
What is a brand leader?
Product with the highest market share
What is CSR – Corporate Social Responsibility?
Management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders
What are LEDCs?
Less economically developed countries
What is the marketing budget?
An outline of the costs that a company will spend to market its product or service
What is the salary?
Annual income that is usually paid on a monthly basis.
What are Non-governmental organizations (NGOs)?
not-for-proft group, independent from government, which is organised on a local, national or international level to tackle issues that support the public good
What is the board of directors?
A group of people who control the management and decision-making of the business
What are entrepreneurs?
Someone who takes the financial risk of starting and managing a new venture with their own finance.
What is a pricing strategy?
The methods that companies employ to determine the pricing.
What are subsidies?
Financial benefits given by the government to a business to reduce costs and encourage increased production.
What are stakeholders?
Individuals, groups or organizations directly involved with, or indirectly affected by, a project, product, service or enterprise
What are distribution channels?
Network of organizations involved in getting a product/service from the producer to customer
Secondary Market Research?
A type of research that has already been gathered, or published by others
Who is Yannick Pedersen?
Role: The director of Fresh of Waater Division.
Vested interest: updating the water treayment plants.
Potential issue: Ariadne’s priorities and autocratic leadership style
Who is Ariadne Johansen?
The director of Engineering division
What is Geng PLC?
A business acquired by SVT - water supplier in UK
What is H4 PLC?
Rival engineering company; Taken over by SVT; manufactures steam and gas turbines in the UK
Who is Jayne Dees?
Giving LEDCs access to potable water/creating a cheap, easy usable and high quality water purifier.
Who is James azuki?
University student from Tanzania who designed the WF15 (water purifier that filters viruses and bacteria
What happened in the 1980s?
Expansion into other business sectors (desalination & water filters)
What happened between 2005 and 2010?
- Consumer Products Division making increasing contributions to overall profits
- SVT’s share price rising by 65 % and annual profits doubling
What happened in 2010?
Taking over small water filter manufacturers in EU and USA.
What happened in 2015?
Takeover of H4 PLC and modernization/ reorganisation programme
What happened in 2016?
Completation of modernization porgramme
What happened in 2018?
Approval of substantial 5-year marketing budget for Consumer Products Division
What happened in 2019?
Jayne Dees spending 3 months in Sudan.
What happened in 2022?
- Smallest of the former H4 factories manufactured SVT’s first wind turbine.
- Engineering Division began production of the WF15.
