Term 1 Flashcards
3 types of leaders
Autocratic, Democratic, Laissez-faire
Autocratic
centralized decision making authority. makes decisions without seeking input from team members. relies on own judgement.
democratic
encourages active participation and collaboration from team members in decision making. values input from members.
laissez-faire
allows team members significant freedom to make decisions. provide minimal guidance. focus on results from team members to make solutions.
leaders v managers
leaders do not have to be formal in an organization. Managers are those with formal responsibilities
internal stakeholders
employees, managers, owners
external stakeholders
suppliers, government, shareholders, customers, creditors.
unlimited liability
WHen business owners are responsible for covering any debt that a company is unable t pay if it fails
limited liability
where a business is registered as a seperate entity t its owner meaning that the personal assets of the owner cannot be used to cover businesses debt
sole trader
legal label given to any business owned by 1 person
partnership
owned and operated by 2-25 people
Registered company
Those jointly owned by 1 or more people is registered with the government
rangatiratanga
qualities of a leader in a business such as bringing people together and decision making
tikanga
the way of doing business, established rules, guidelines, etc. aligns with business values.
putake
the reason a business is established related to business goals
turanga
The legal structure of a business eg: partnership, private companies, trusts. However expanded to include systems of governance in cases where businesses are based around communally owned assets eg: land
kaitiakitanga
The responsibility of looking after the natural resources of the future.
Consumers guarantee act (repair, replace, refund)
A law that states that consumers have legal entitlement to have services carried out with reasonable care , skill, time and quality. The act covers both goods and services.
consumers rights in CGA
A right to insist that the seller or service fixes the issue. in serious cases the consumer can demand the resolution of a repair, replacement or refund.
Fair trading act
makes it illegal for a business to mislead or deceive customers to ensure that sellers act in a fair and honest manner when promoting and selling their products covering almost all sale types however excluding private sales and garage sales. - if breached business may receive $600,000 fine
Health and safety work act
emphasis on management of health and safety at work to prevent safety issues. Requires a constant safe working environment to reduce risk of harm. This ensures the health and safety of workers and workplaces.
Northern Rocks points
- 2 owners
- Partnership
- Democratic
- Founded in 2019
- 7 employees
- Built to create community
- Owns side incomes including - yoga, gym, cafe and climbing gear
- In growth stage as early founded and climbing market is expanding due to olympic awareness.
Whanaunatanga
Relationship built with another business/supplier
Communication methods
Email, Social Media, Phone call, Billboard, TV, Face to face, Website.
Types of barriers
Physical, Attitude, Language, Priorities, Incorrect communication methods.
Market Share
Market share is the percentage of total sales in an industry generated by a particular company.
Northern Rocks sustainability (7)
- Reuses towels
- Sells lost water bottles for charity money
- Gifts old rock climbing shoes to the community
- Sells second hand clothes for charity money
- Encourages the use of reusable cups over plastic bottles
- Uses enviro-friendly cleaning products
- Signage to prevent excessive shower use
4 stages of a business
slump, recession, recovery, boom
Consumer confidence
How positive or a negative a consumer feels about the economy
Business confidence
Business confidence is an economic indicator of how the business views the economy
Why consumer confidence was low in 2020
COVID-19
led to consumers fear of getting sick and not trusting the economic state
How did northern rocks improve consumer confidence
- Adding sanitation
- adding new climbing colours to upgrade facility
Customer
interest and influence
The consumers interest in the business is a result of customers wanting new and improved products available to them. ~ They can influence the business by choosing to buy (or not buy) goods from a business affecting their sales figures.
Local Community
interest v influence
The community’s interest in the business is that the Local community wants businesses to contribute to the local economy. ~ They influence the business by helping shape local regulations that affect businesses and stop buying from certain businesses.
Supplier
Interest v influence
The suppliers interest in the business is that Suppliers revenue is based on the number of sales made to businesses so their success is linked ~ They can influence the business by Raising/lowering prices affecting coasts. Offering new products to businesses to buy.
Competitor
interest v influence
The competitors interest is the success of a competitor is linked to a business’ success as they are fighting for market share. ~ They have influence through Providing offerings which deter customers from shopping with original business ( reducing sales)
Employees
interest v influence
The interest in the business for employees is that Employees are employed by the business so are interested in its success as it contributes to their pay. ~ They have influence on a business as Employees can be more or less productive which can affect the costs of the business.
Owners
interest v influence
The owners’ interest in the business is because Owners have contributed their own capital to the business so it wants to succeed. ~ They have influence over the business because The owners set the strategic direction of the business and set its priorities.
Long term impacts
Increase revenue.
Improve brand awareness.
Build a strong reputation.
Create a market-leading online presence.
Expand into new opportunities.
Keep innovating.
Ways to minimise recession
Decrease range of products
Decrease production
Lay off employees
Increase marketing (eg social media, events, loyalty programmes.
Short term Impacts
customer satisfaction, customer sales
