Test (UB) Flashcards
Name objectives with the Private Sector
Provide a good quality service
- so that customers leave a good review online
- So that customers recommend you to family and friends
Growth
- increase your market share
- to reach customers globally
- increase in profits
Maximise Profits ( sales up)(costs down)
- so share holders receive high dividends
- so you can afford to expand without a bank loan
Dominate the market.
- to be the market leader
Become more environmentally friendly
-to give yourself a socially responsible image.
Advantages of a Hierarchical structures. 2
Each employee has one manager to whom he or she is responsible
It is easier to check everyone’s work because there is a narrow span of control
Hierarchical structure what is it
Many layers of management
long chain command
Narrow span of control
Easy to put procedures in place
Disadvantages of a hierarchical structure
Slow response to market and consumer demands
Length of communication
Length of time to make decisions
Explain external factors (positive) 6
Political - the government may grant you planning permission. This means. your business can afford to expand.
Economic - there is a high rate of unemployment. Therefore there is a larger choice of people to employ so you can pick the very best staff.
Social - there could be a change in trends and fashions. This means, you can produce products which are in high demand which increase profit levels.
Technology - new technology can become available. This means production levels may increase.
Environment - there is an increased pressure to recycle more. This means your business could have an improved image if they increase the amount they recycle.
Competition - your competition may reduce their prices. As a result, customers may view your products as a higher quality as they are more expensive.
Explain external factors (negative) 6
Political - the minimum wage could be increased. This means you may have to make staff redundant so production levels would fall.
Economic - There could be an increase in interest rates. This means it is more expensive to borrow money, so less likely to expand.
Social - there could be a change in trends and fashions. This means, a business will have to conduct market research.
Technology - there is a growth in s-commerce. Therefore, you will need to set up a new department so you will have to hire staff.
Environment - there could be a natural disaster such as a storm or a flood. This means your business may havre to close for a period of time to redecorate.
Competition - a competitor may have to reduce their prices. This means you will lose loyal customers as you’re too expensive.
Internal factors
Your business may have a lack in finance
- this means you may have to get a bank loan and pay bank interest.
- this means you cannot afford to conduct market research so you cannot develop new products.
- there fore you may have to make staff redundant.
Your staff may be really god at their job.
- this means do not make mistakes when producing products.
- therefore they produce high quality products.
Your staff may be absent regularly.
- therefore staff relationships breakdown as others in the dept often have an increase workload when they are absent.
- therefore you have to hire cover staff.
There may be stock getting stolen from your stock room.
- this means you face an increase in costs.
- therefore you have to invest in security to stop the theft
Management may have poor decision making skills.
-Therefore they often hire unsuitable stuff.
- therefore profits are not as high as they could be
What is a flat structure
Fewer management levels
Wider span of control
Short chain of command
Ads of flat structure
Faster lines of communication
Faster response to change
Less expensive wages
Employees have more responsibility - more tasks
Disads of a flat
Increases stress for managers as they have a wider span of control
Increased workload
Reduced promotion opportunities
Some staff are unmotivated as they have to take on extra jobs without pay
