Theme 1 Flashcards

1
Q

What is motivation

A

The will or desire to work due to enjoyment of work itself

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2
Q

Why is motivation important

A
  • reduced recruitment costs, increase retention

- improve reputation, due to better customer service

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3
Q

What are the 4 theorists

A
  • Taylor
  • Maslow
  • Herzberg
  • mayo
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4
Q

Taylor features

A
  • scientific management
  • money motivates
  • piece rate
  • specialisation/division of labour
  • autocratic
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5
Q

Herzberg theory

A
  • 2 factor theory
  • hygiene factors
  • motivators
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6
Q

What are hygiene factors

A
  • hygiene factor: necessary to go to work, not motivating.

E.g. Pay, working environment

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7
Q

What are motivators

A
  • motivators: factors that motivate.

E.g. Training, bonus

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8
Q

Maslow theory

A
- hierarchy of needs
Self actualisation (H)
Esteem (H)
Social belonging (H)
Safety (L)
Physiological (L)
- assumed all motivated by the above in order.
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9
Q

Mayo theory

A
  • human relations approach
  • Hawthorne experiment: factory female workers
  • changed aspects of working environment e.g. Lighting, rest breaks.
  • workers motivated by having social needs
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10
Q

What is a mass market

A
  • where a business sells into the largest part of the market

- where there are many similar products on offer

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11
Q

What is a niche market

A
  • where a business targets a smaller segment of a larger market - where customers have specific needs and wants
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12
Q

Mass markets characteristics

A
  • customers form majority of market
  • needs and wants more general
  • higher output and capacity
  • low cost, wide distribution
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13
Q

Niche market characteristics

A
  • loyal customers
  • higher profit margins
  • lack economies of scale
  • can attract competition if successful
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14
Q

What is market size

A
  • the total volume of a market

- in terms of no.of sales or value of sales

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15
Q

What is market share

A
  • the percentage/segment of a market which a business controls
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16
Q

Why are brands useful

A
  • product can be given ‘personality’

- product differentiation

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17
Q

What is a dynamic market

A
  • a market which is constantly changing
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18
Q

Four key factors to consider in dynamic markets

A
  • online retailing
  • how markets change
  • innovation and market growth
  • adapting to change
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19
Q

How does online retailing impact a dynamic market

A
  • development of technology
  • increase in online retailers
  • can cause store based retailers to lose market share
  • online market shares predicted to increase
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20
Q

How does competition affect dynamic markets

A
  • can reduce market share of other companies
  • can stimulate innovation
  • can prevent monopolies
  • lower prices
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21
Q

Difference between product and market orientation

A
  • product, where a business chooses to focus on what it does best
  • market, where a business focuses on customer preferences
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22
Q

Pros and cons of secondary market research

A
  • cheap
  • usually based on sales figures
  • outdated
  • not specific
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23
Q

Pros and cons of primary research

A
  • specific to objectives
  • latest info
  • expensive
  • bias
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24
Q

Qualitative data examples

A
  • focus groups

- interviews

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25
Quantitative research examples
- sampling | - questionnaire
26
Limitations of market research
- sample size | - sample bias
27
Uses of IT to support market research
- social media - databases - websites
28
What is market segmentation
- finding ways to divide a market up to identify untapped opportunities
29
Segmentation methods useful for larger businesses
- add one niche product to portfolio | - multiple segmentation
30
What is market mapping
- a visual way for a business to identify their position in the market and identify gaps in the market
31
Purpose of product differentiation
- enables business to increase prices if costs increase | - protect product from competitors
32
What is adding value
- the process of increasing worth of resources by modifying them
33
How can you add value
- create a brand image - increase quality - branding/packaging
34
Factors leading to change in demand
- price - competition - change in consumer income - trends - advertising - demographics - external factors - seasonal
35
Factors leading to change in supply
- change in cost of production - new technology, lower prod costs - indirect taxes (VAT) - government subsidies, financial contribution - external factors
36
Supply curve
X axis - quantity | Y axis - price
37
PED
(%change in QD)/(%change in price)
38
Determinants of PED
- product differentiation - substitute goods - branding and brand loyalty
39
Classifying PED
0 = Perfectly inelastic 0 - 1 = inelastic 1 + = elastic
40
Value of PED to businesses
- sales forecasting | - pricing strategy
41
How to reduce PED
- product differentiation | - eliminate competition (predatory pricing)
42
Calculate YED
(%change in QD)/(%change in income)
43
Real income formula
%rise in earnings - %rise in prices
44
Interpreting values of YED
- normal good (+ve YED 0 - 1) - luxury good (+ve YED 1+) - inferior good (-ve YED)
45
Factors influencing YED
- necessity or self indulgence | - type of customer (affluent?)
46
Significance of income elasticity to businesses
- sales forecasting | - financial planning
47
What aspects are in the design mix
- aesthetics - function - economic manufacture
48
Changes in the design mix that reflect social trends
- concern over resource depletion, sustainability - designing for waste minimisation and reuse , CAD - recycling
49
Types of branding
Individual brand, separate form other brands + allows business to sell unrelated products. - Higher cost to develop more brands Brand family, all brands seen as one + Can develop brand with global presence, efficiency. - If one product is bad the whole brand suffers. Corporate brand, adding company name to brand to add credibility + Can allow business to communicate their values and target market, leading to customers forming an opinion before buying. + Can allow good reputation to spread across all products which may be unrelated. - Dilution of image
50
Benefits of branding
- added value - premium prices - reduced PED - combatting the discounter
51
Changes un branding and promotion which reflects social trends
- viral marketing - social media target market + crowdfunding - emotional branding
52
Promotion types
- persuasive advertising, distinctive image - public relations, good relationship with journalists etc. - buy 1 get 1 free, stimulate demand
53
Pricing strategies
- skimming - penetration - cost plus - competitive - predatory, eliminate rivals through low price - psychological
54
Factors determining pricing strategy
- product differentiation - strength of brand - competition - PED - stage in product life cycle
55
Distribution channels
- traditional - direct to retailer - be your own retailer - direct online - online retail (ebay)
56
Stages of product life cycle
- R&D - introduction - growth - maturity - decline - extension strategy
57
What is the value of the product life cycle
- plan marketing strategy | - identify time of maturity and decline
58
Extension strategies examples
- new product - modified product - promotion, advertising campaign
59
Methods used for product portfolio analysis
- Boston matrix
60
Boston matrix categories
- cash cow - rising star - problem child - dogs
61
Purpose of product portfolio anlysis
- building: identify where investment in marketing is needed - holding: maintaining sales - milking: taking profits without a lot of investment - divesting: selling off product
62
Marketing strategy
- plan for future marketing activity in order to achieve business objectives
63
Keys to a successful marketing strategy
- specific - achievable - sustainable
64
Approaches to staffing
- staff as an asset, (pay pensions) | - staff as a cost, (zero hour contracts)
65
How to achieve greater flexibility within the workforce
- multi skilling, workers given variety of tasks - part time and temporary - flexible hours and home working - outsourcing
66
What is a trade union and collective bargaining
- organisation that employees pay to join in order to gain greater power and security at work - union bargains with employers on behalf of all workers
67
What is individual bargaining
- where employee bargains with employer on their own
68
The recruitment process
- job description - person specification - advertise - shortlist - selection - recruitment
69
Methods of external recruitment
- media advertising - job centres - commercial recruitment agencies
70
+ve and -ve of internal recruitment
- reduce recruitment/selection costs - promotion opportunity - lack of innovation - conflicts
71
+ve and -ve of external recruitment
- wider pool of candidates - increase innovation - expensive - demotivate workers
72
Factors influencing choice of external recruitment
- cost of recruitment method - size of the recruitment budget - location and characteristics of the likely candidates
73
Methods of selection
- interviews - testing and profiling, aptitude, examines personality - assessment centres
74
+ve and -ve of induction training
- allows to make new staff fully productive asap - avoids costly mistakes at work - not as productive as on the job
75
+ve and -ve of on the job training
- learn whilst working - specific to workplace - costly mistakes
76
+ve and -ve of off the job training
- allows employee to concentrate fully on learning - allow access to more experienced instructors - not productive
77
What is levels of hierarchy
- the number of different levels of management throughout an organisational structure
78
What is span of control
- the number of people directly under the supervision of a manager
79
What is chain of command
- the route through which information travels throughout the organisation
80
What is centralisation
- where decision making and power and power remains at the top management levels
81
What is decentralisation
- where decision making power is delegated to workers lower down in the organisation
82
Type of organisational structures
- tall - flat - matrix
83
Tall organisational structure
- small span of control | - long chan of command
84
Flat organisational structure
- large span of control | - short chain of command
85
Matrix organisational structure
- cross functional | - employees form different departments work as teams
86
+ve and -ve of matrix organisational structure
- encourages innovation - job enrichment - 2 line managers - conflicts
87
Why is organisational structure important
Poor organisational structure leads to: - poor communication leads to mistakes - duplication of tasks - task being overlooked - departments failing to work efficiently
88
Consultation
- asking views of the staff you manage and take their opinions into account
89
Team working
- attempt to maximise staff satisfaction and involvement
90
Flexible working examples
- flexitime - home working - job sharing - maternity leave
91
Job enlargement
- anything that increases the scope of a job
92
Methods of job enlargement
- job rotation | - job enrichment
93
Types of leadership style
- autocratic - democratic - paternalistic - laissez faire
94
Ways of generating business ideas
- observation - brain storming - thinking to future - personal/business experience - innovations
95
What is an intrapreneur
- characteristics of an entrepreneur but works within a large organisation
96
Why is it risky to expand a small business rapidly
- pressure on firms resources | - outstrip entrepreneurs capacity
97
Skills required to be a successful entrepreneur
- financial understanding - persuasive abilities - problem solving skills - networking skills
98
What is profit satisficing
- finding the ideal measure of profit without compromising sustainability
99
Non financial motives for becoming an entrepreneur
- independence - home working - ethical stance - social entrepreneurship
100
Mission statement
- summary of aims and values of a company
101
Common business objectives
- survival - profit maximisation - sales maximisation - market share - cost efficiency - employee welfare - customer satisfaction - social objectives
102
Businesses with unlimited liability
- sole traders | - partnerships
103
Businesses with limited liability
- private limited | - public limited
104
+ve and -ve of limited company
+ shareholders limited liability + gain access to wider range of borrowing opportunities - public financial information - follow more expensive rules
105
What is market flotation
- the process of changing an LTD to a PLC | - by issuing shares and getting public to buy them
106
Other forms of businesses
- franchise - social enterprise - lifestyle businesses - online businesses
107
Opportunity coasts in developing a business idea
- personal opportunity cost, long hours, stress | - opportunity coats of choosing one idea over another
108
How do businesses decide between opportunities
- predict potential sales - consider cash requirements - deciding whether time is right - deciding whether it is feasible skill wise
109
Risks of overtrading
- liquidity problems, if payment is not quick - inadequate funding - unable to pay staff or suppliers
110
What does the creation of a marketing process involve for a business?
- Decision 1: Choose which customers to serve This involves: - Market segmentation (analysing the different parts of a market). - Targeting (deciding with market segments to enter) Decision 2: Choose how to serve those customers - This also involves two important parts of marketing strategy: - Product differentiation (what makes it difference from the competition) - Market positioning (how customers perceive the product)
111
What is market positioning?
- Market positioning refers to the consumer's perception of a brand or product in relation to competing brands or products. - A market map/positioning map can be used to identify a range of positions a product can take in a market, using 2 dimensions important to customers.
112
Possible dimensions for a market/positioning map?
- Low price/high price - Basic quality/high quality - Necessity/luxury - Low volume/high volume
113
Advantages and disadvantages of market/positioning maps?
+ spot gaps in market + analyse competitors - gap doesn't = demand - dependant on reliability of research
114
Importance of market positioning to a business?
- Known identity allows business to target certain demographics. - Helps staff understand what is expected by customers from their service. - effective positioning conveys why the company is better than others.
115
Difference between empowerment and delegation
- empowerment worker as authority to manage and scope to decide what task - delegation passing authority down
116
Methods of financial reward systems
- piecework - commission - profit share - performance related pay