Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business > Theme 1 > Flashcards

Theme 1 Flashcards

1
Q

Survival

A

Not go bankrupt or try to break even

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Market share

A

% of sakes by a business compared to the whole market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

SMART Target

A 
Specific 
Measurable 
Achievable 
Relevant 
Time-bound
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Specific

A

State exactly what is to be achieved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Measurable

A

Capable of measurement- so you are able to determine if it has been achieved

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Achievable

A

Realistic and the resources available to the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Relevant

A

Objectives should be relevant to the people responsible for achieving them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Time-bound

A

Should be set with a time frame in mind, these deadlines also need to be realistic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the functions of objectives?

A 
A focus for all activity 
Targets for individuals or groups
A means of measuring performance 
Provide a clear focus for decision making 
Motivate employees 
Reduce uncertainty 
Provide sense of unity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

As you go from mission to corporate/strategic to functional to team to individual, the objectives get…

A

Increasingly detailed and as you go up it gets increasingly strategic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is marketing as a function?

A 
Promote brand
Product 
Price 
Place 
Promotion 
Advises on customer trends 
Collates and analyses markets research 
Decides how to advertise and promote new brands
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Human Resource objectives

A

Plan for recruitment

Consider how to plan for equal opportunities and redundancy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Financial objectives

A

Monitors spending and controls costs

Identifies which budgets can be set for each customer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Operational objectives

A 
People doing the service 
Customer satisfaction 
Oversees quality 
Manages a supply chain 
Oversees the delivery to the customer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Why do businesses need to make business choices?

A

Due to limited resources, businesses have to make choices

Decisions are made under circumstances of uncertainty

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What resources are scarce in a business?

A

Finance- particularly cash
Time
Capacity - stock,machinery, buildings
Skills and capabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Opportunity cost

A

The cost of missing out on the next best alternative when making decision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does the business mean to be organically?

A

Just the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What does the business mean to be inorganic?

A

Buying and merging with a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What are some personal opportunity costs?

A

An entrepreneur may miss out on a regular income as a consequence of starting their business
Investment will occur in assets at the expense of personal excitement
Long hours could be worked at the expense of family time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are opportunity costs of developing business ideas?

A

One idea is chosen whilst another idea is sacrificed
Cost of launching idea at the expense of further development
Committing capital to investment in assets, may restrict other opportunities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the factors considered when making a decision on which alternative will be the opportunity cost?

A

Budget
Time
Consequence or risk
Considering potential sales from each idea
Considering the cash/financial commitment requires
Whether the decisions fit your skill set

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is a trade off?

A

It leads from an opportunity cost. A trade off arises where having more of one thing potentially results in having less than another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is the trade off for this choice?- less market research

A

Less successful new product launch - lower sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is the trade off for this choice?-higher quality standards to build reputation

A

More quality control and assurance costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is the trade off for this choice?- higher advertising online

A

Reduces adverting on tv can’t target older audience

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is the trade off for this choice?- choose lower risk investments

A

Gain lower rewards

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What is a partnership?

A

An organisation owned by 2-20 people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Positives of partnerships

A

Partners can add capital finance

Support - no long hours

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

Negatives of partnership

A

Unlimited liability
Disagreement between partners
Complicated to set up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

LTD - private limited company

A

A business that is owned by shareholders and run by directors - have to get approval to sell shares -family and friends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Positives of LTD

A

Limited liability

Controls who buys the sells

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Negative of LTD

A

Limits amount of finance you can raise
Dilute ownership -spilt profits
Expensive and time consuming to set up
Competition can see how well your doing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Limited liability

A

Company has a separate legal entity - company is separate to owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Sole traders

A

Owned by and run by an individual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Positives of soles traders

A

Maintain power in decisions
All profit goes to owners
Small and easy to start up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Negative of sole traders

A

Unlimited reliability - responsible
Work for long hours
Lack of creativity and support from other people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Social enterprise

A

Is a business that trades for a social and or environmental purpose. They trade in order to benefit the community. These businesses have social aims as well as financial
-not a charity, they achieve a social aim through donations and grants through not trading

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Lifestyle businesses

A

The aims is to provide a great quality of life for the owner
Owners start a business hoping to sustain a certain level of income
Start a business doing something they really enjoy
Allows an entrepreneur to live how they want and still run a business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Online business

A

Easy to setup
Available to customers 24/7
Manages from anywhere, owner not in office

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What is a franchise?

A

The legal right to use the name and logo of an existing firm and sell the same products -KFC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What is a franchisee?

A

The person who buys the rights from a franchisor to copy a business format

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What is the franchisor?

A

Established, well known brand. Grants a license to another business to allow it to trade sing the brand or business format

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Drawbacks for the franchisee

A

You don’t control many decisions
-you have to follow the rules-you can’t sell without the franchisors permission
-you must buy supply’s from the franchisor
Higher than expected costs - start up, royalties, suppliers and franchise renewals can be expensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Benefits of franchisee

A

The brand is known and established
Less likely to fail with the backing of the company
The franchisor provides assistance with
-start up costs, management, financial, marketing, training

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

Benefits of the franchisor

A

A quick way to expand the business
The franchisee provides much of the finance and takes responsibility for setting up and running the business
Motivation-franchisee has own capital tied up in business
Economics of scale
-buying power and mass advertising
Receives royalty payments from the franchisee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

Drawbacks of the franchisor

A

Doesn’t get all the profits from the franchisee - only a %
A loss of control- cannot manage day to day activities
Bad customer service or hygiene at any of the franchises tarnishes the reputation of the brand

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

Business

A

A business is an organisation that exists to provide goods and services on a commercial basis to customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

Goods

A

Physical products - consumer electronics, cars

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

Services

A

Intangible products - insurance, dental service, cleaning

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Benefits of business to society

A

Creates employment and develops human capital
Drives innovation through R+D and new products
Pay taxes on profits earned and collect taxes from government
Create wealth by providing returns on investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Enterprise

A

the skills and abilities to take risks aims create profits

The creation of a business to meet the needs and wants of customers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Entrepreneur

A

A person who organises, operates and assumes the risk for a business venture - a person who takes the risk in starting a new business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Start up

A

A new business enterprise, formed by one or more entrepreneurs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

How to be a good entrepreneur?

A

Creativity
Driven and determined
Risk taker
Spots business opportunities -looks for gaps in the market
Take calculated risks in order to gain possible returns
Acts as a catalyst for the creation and growth of new business enterprises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

What is the importance of business ideas to entrepreneurship?

A 
Solve a problem 
Offer a better cheaper way
Simple and practicable
Can be delivered quickly 
Have a clear focus 
Anticipate trends and exploit growing markets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Sources of business ideas

A 
Business experience 
Personal experience 
Observations 
Innovations 
Brainstorming 
Market mapping
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Business experience

A

Good way of getting insights into what works and more realistic business plan and less need for market research

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Personal experience

A

Day to day activities,interests and hobbies

Bad experiences or frustrations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

Observations

A

Watching closely what happens to customers and look for poor customer service

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

Innovations

A

Taking an idea that already exists but improving it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Brainstorming

A

Variables are plotted to identify niches

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

Market mapping

A

A technique used to analyse key variables within a market place and identify any niches
Variables differentiate brands
Monitor existing brands
Used to position brands

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

What do you have to do to develop and expand a business?

A

Carry out market research to see if there isa demand to justify expansion
Raise finance
Invest in new technology and better equipment
Take on more skilled staff

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Intrapreneurship

A

Involves people within a business creating or discovering new business opportunists, which leads to the creation of new parts of the business or even new businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
66
Q

Intrapreneur

A 
An employee within a larger business who thinks like an entrepreneur 
Takes risks 
Solve problems 
Drives innovation 
Understands trends
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
67
Q

Ways to encourage intrapreneurship in a business

A

Look out for entreprenurial activity
Give employees ownership of projects
Make risk taking and failure acceptable
Give employees time outside the confines of their job description

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
68
Q

What are some barriers to entrepreneurship?- financial

A

Lack of start up capital
Lack of cheap labour
Lack of investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
69
Q

What are some barriers to entrepreneurship?- political

A

Unstable political landscape

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
70
Q

What are some barriers to entrepreneurship?- personal

A 
Lack of self esteem 
Risk averse -don’t want to take risk 
Fear of failure 
Lack of technical skills 
Gender 
Viable idea
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
71
Q

What are some barriers to entrepreneurship?-economic

A

Taxation

Market entry regulations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
72
Q

Uncertainty

A

When a business is unable to predict external shocks or future events - contingency plan

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
73
Q

Risk

A

The probability that things will not go as well as planned

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
74
Q

How successful entrepreneurs deal with risk?

A

Take calculated risks rather than gamble
Spread risk by diversifying
Look for higher returns to take account of the risks
Keep going despite adversity - persistence is a key quality

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
75
Q

What are the rewards for enterprise?

A 
Profits made by the business
Capital gains made by selling the business 
Self esteem 
Personal development 
Sense of control 
Satisfaction from building something
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
76
Q

Organisational design

A

Creates a formal hierarchy that establishes who is accountable to whom throughout an organisation -people and management

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
77
Q

What does organisational design show?

A

Authority and responsibility
Job roles and titles
Accountability
How communication flows

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
78
Q

Hierarchy

A

The number of layers of management or suspension in the organisation structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
79
Q

Tall hierarchy

A

6 levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
80
Q

Flat hierarchy

A

4 levels

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
81
Q

Span of control

A

The number of employees for whom a manager is responsible
Narrow - 3
Wide -6

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
82
Q

Advantage of narrow span of control

A

Allows for closer supervision of employees
More layers in the hierarchy may be required
Helps more effective communicate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
83
Q

Advantages of wide span of control

A

Gives subordinates the chance for more independence

More appropriate if labour costs are significant - reduce number of managers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
84
Q

What is the chain of control?

A

it describes the lines of authority within a business, this is the flow of authority, power and information through the organisation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
85
Q

What does a leader do?

A

delegates trust
relationship building with staff
relationships within and outside of the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
86
Q

What does the entrepreneur do?

A

Hands on - does lots of the work

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
87
Q

What is leadership?

A

a relationship through which one person influences the behaviour or actions of other people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
88
Q

What is the traditional view of leadership?

A

Command and control

decision-making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
89
Q

What is the modern view of leadership?

A

Inspiring employees
creating a vision
shaping core values and culture
building effective teams

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
90
Q

What does autonomous mean?

A

when someone has the power delegated to them to make decisions without any supervision

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
91
Q

Why is leadership becoming increasingly important?

A

Changing organisational structures - flatter and more delegation
teamwork
coaching, support and empowerment
Rapid change - soft skills of leadership and management increasingly important

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
92
Q

Management

A

The process of dealing with or compelling things or people

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
93
Q

Leadership characteristics

A

motivating and inspiring
innovators
creates change
respected and trusted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
94
Q

Management characteristics

A

directing and monitoring
problem solver
has employees
position of responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
95
Q

Authoritarian

A

takes all decisions, top-down approach, command and control

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
96
Q

Paternalistic

A

Leader looks after staff like a father

takes all decisions but does so in the interest of employees

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
97
Q

Democratic

A

workers may have a say in decision making

consultation takes place before decisions are made

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
98
Q

Laissez faire

A

workers have the freedom to make their own decisions and are trusted

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
99
Q

What is motivation?

A

The will to work. When people do something because they want to do it; desire to achieve a result
-it comes from enjoyment of work itself and from desire to achieve certain goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
100
Q

What might happen if employees are demotivated? - They might

A

lack commitment or loyalty to the business
have a high absenteeism
have a low productivity
All of which affects profitability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
101
Q

What might happen if employees are very demotivated?

A

Industrial disputes, or they may leave and the business may have a high labour turnover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
102
Q

What is Mayo’s motivation theory? - 1800-1949

A

Employees are motivated. by relational factors - camaraderie, attention

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
103
Q

What was Mayo’s investigation?

A

Tests done in 1920 found that improved lighting and work breaks only temporarily increase productivity
He conducted interviews where employees could express their opinion. - after this the group increased productivity as leadership changed and more socialising

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
104
Q

What are the core principles of Mayo’s theory?

A

Better communication
Greater participation from managers
Working in groups inspired productivity from each individual

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
105
Q

What are the outcomes of Mayo’s theory?

A

Involving workers in decision making improved motivation
Financial/environment did not help
businesses should reorganise production to encourage team working

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
106
Q

What is the investigation that Herzberg did for motivation?

A

Research done in 1950s where he asked employees to describe recent events that had given rise to good feelings about their jobs and then asked about events giving rise to bad feelings

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
107
Q

Herzberg motivation factors?

A

Achievement, recognition, the work, responsibility, advancement

108
Q

Herzberg Hygiene factors?

A

Company policy, administration, suspension, salary, interpersonal relations, working conditions

109
Q

What did herzberg feel about money as hygiene factor?

A

Saw pay as a hygiene factor, not a motivator

A feeling of being unpaid could lead to a grievance; but. high pay would soon be taken for granted

110
Q

What is Maslow’s Hierarchy of needs?

A

It explains that everyone has the same needs all of which can be arranged into hierarchy.

111
Q

What is the outcome of Maslow’s theory?

A

Methods to motivate employees will depend on where they are in the hierarchy

112
Q

What are Taylor’s principles of his theory?

A

Workers don’t naturally enjoy work so need to be under supervision and control
Workers are paid according to the number of items they produce in a set period of time
As a result workers are encouraged to work hard and maximise their productivity

113
Q

What were the outcomes of Taylor’s theory?

A

Tall hierarchy’s may be better so that workers can be supervised and controlled
autocratic leadership style links with this theory
Performance related pay would be a good motivator according to Taylor

114
Q

Financial incentives for motivation

A 
Profit share 
commission 
bonus 
piecework 
performance - related pay
115
Q

What is piecework?

A

Employees are payed per finished item or unit

116
Q

Advantages of piecework

A

Experienced and efficient workers can earn more
Incentive is to complete the work
Employees may work more hours to get the work done
Home workers can start and finish when they want to - lits round family time

117
Q

Disadvantage of piecework

A

As workers speed up they may cut corners
Quality may suffer
Slower workers may fall under the national minimum wage

118
Q

Commission

A

Sales- people may be paid commission only, or low basic salary and commission
May be paid a % of unit price or per unit sold

119
Q

Advantages of commission

A

Skilled sales people can make very good money
Motivates employee to sale more
Employer is not paying for down time when the employee is not selling

120
Q

Disadvantages of commission

A

Salespeople on commission only could earn no money at all
Not a steady income
Risky in recession
Employees are just selling and not necessarily meeting the need of the customers
temptations to pressure sell or oversell

121
Q

Bonus

A

Is a lump some of money that is paid on top of a salary or wages
Can be for:
- sales for meeting targets
- Performance - for meeting output or quality targets
- Christmas - a yearly bonus

122
Q

Advantages of a bonus

A

Can be used for appreciation for an employees hard work throughout the year
Can be used as an incentive, especially in sales or where people must meet certain goals

123
Q

Disadvantages of bonus

A

Can be costly for any company, so a business may offer a gift card instead
When an employee receives a bonus, it becomes part of their total income, at the end of the year, the employee will also be paying tax on their bonus

124
Q

Profit Share

A

Employees may be paid an annual dividend based on the level of profits made by the firm
Encourages teamwork, employees become more loyal to the company

125
Q

Advantages of profit share

A

Brings employees together- work towards a common goal
The employee focus will be profitability
Bridges the gap between the employer and the employee
Promotes the well-being of the employee

126
Q

Disadvantages of profit share

A

The salaries of the employees go up equally not on the basis of merit or promotion
The focus of the employee may be on profit rather than quality
Start-ups - drastic fluctuations in the earnings of the company, may effect earnings of the employee

127
Q

performance related pay

A

A line manager sits in an appraisal and decides a set of objective which are set as targets
Some will give a bonus: good 5% bonus, excellent 10% bonus

128
Q

Advantages of performance related pay

A

There is a direct link between performance level and amount employees are paid
Easy for manager to rank the staff when they look at who to promote

129
Q

Disadvantages of Performance related pay

A

Critics say it causes jealousy and unrest
Those who don’t meet their targets may get demotivated and blame their line manager - bonuses are often too low to act as an incentive to work towards targets

130
Q

Examples of non financial motivation methods

A

Delegation, consultation, empowerment, team working, flexible working, job enrichment, job rotation, job enlargement

131
Q

Delegation

A

Involves allocating tasks to employees

A manager has to delegate work to their subordinates

132
Q

Advantages of delegation

A

Gives manager confidence, empowers managers to make decisions and allocate tasks
Makes sure teams potential is maximised
Builds trusts between employee and managers

133
Q

Disadvantages of delegation

A

Managers often want to delegate work when they are overloaded not when they want to motivate an employee
Managers may not always choose the most suitable employee to delegate work to

134
Q

Consultation

A

Involves giving employees the chance to be part of the decision making process
Employees have discussions with managers about what to improve
by Law they have to consult about- health and safety, redundancies, changes to contract

135
Q

Advantages of consultation

A

Can help avoid any minor issues in the business become larger
Can help the employees feel motivated as their views are asked on certain matters

136
Q

Disadvantages of consultation

A

Employees may not know what it needs to run a successful business
Employees may come up with grudges against the company or between themselves

137
Q

Empowerment

A

Involves allowing employees more authority to delegate tasks to others

138
Q

Advantages of empowerment

A

Staff that are recognised for their ability, trusted and given control over decisions, therefore less frustrated with business and have increased productivity levels.
Empowered employees are close to issues and problems, may be more effective at problem solving on that level
Great involvement means great loyalty to the business

139
Q

Disadvantages of empowerment

A

Sometimes regarded as cost cutting, a way of delayering, making management redundancies, makes managers insecure, and has an associated cost of training
Some see this as giving employees more to do for the same pay
Lack of experience in the job can increases mistakes being made

140
Q

Team working

A

Involves grouping employees to work in teams, through collaboration and discussion a team can often produce a better product or solution that an individual

141
Q

Advantages of team working

A

Pooled talents, individuals specialise, shared responsibility, ideas through brainstorming, more likely to take risks
Well managed work place teams can produce better results
Peer pressure in group can help motivation levels keep high

142
Q

Disadvantages of Team working

A

Tensions can occur, not everyone gets along, team suffer from too many meetings, a team is not the solution to every problem
Sometimes an individual approach would be better, some work better independently

143
Q

Flexible working time - flexitime

A

Involves offering a variety of working patterns so that employees can achieve a work-life balance
Part time, homeworking, job share

144
Q

Advantages of flexible working time

A

Greater cost effectiveness and efficiency, such as savings on overheads when employees work from home or less downtime for machinery when 24 hour shifts are worked
The chance to have extended operating hours
More job satisfaction and better staff motivation
reduced levels of sickness absence

145
Q

Disadvantages of flexible working time

A

It can be difficult to fit shifts and schedules to fit everyone
Some staff may take advantage of the flexible system and not work as hard or when they should - home working

146
Q

Job enrichment

A

Involves giving the employee a greater variety of tasks of a higher responsibility
Means the job m ay be redesigned so that it is more challenging and less repetitive

147
Q

Advantages of job enrichment

A

Employee has more interesting job role - motivating and increases employee productivity and lowers absenteeism rates

  • the employee will feel more loyal to the organisation and that they the sense of achievement
  • prepares the employee for possible promotion in the future
148
Q

Disadvantages of job enrichment

A

May feel their job has become harder
May mean the employee will have to be trained on new machinery, computer or other job skills to perform the new tasks
Not all jobs can be enriched

149
Q

Job rotation

A

Involves moving employees from one task to another

Means that staff can be trained in a variety of skills so can be better utilised when there are shortages

150
Q

Advantages of job rotation

A

Business gets multi-skilled employees who can carry out more that one task

  • job is less monotonous and boring for the employees, reducing labour turnover rates
  • easy and cost effective way to motivate employees and improve productivity
151
Q

Disadvantages of job rotation

A

Many employees may be unwilling to change jobs for something they don’t know, or work with a different team
Takes time for employees to learn the new skills and get up to speed

152
Q

Job enlargement

A

Involves giving an employee more tasks of the same level of responsibility
- Designed to prevent the employee from getting bored and to expand the scope of their job at the same level

153
Q

Advantages of job enlargement

A
  • makes job less boring and repetitive
  • Employee productivity may be improved
  • Improves employee retention and absenteeism
154
Q

Disadvantages of job enlargement

A

May be added stress as employee may see it as more tasks to get done in a working day
Needs to be linked to a clear career progression to make sense to the employee

155
Q

4 Reasons to recruit staff

A
  • business expansion - increasing sales of existing products, developing new products, entering new markets
  • Existing employees leave - retirement, maternity lave
  • Businesses need employees with new skills - innovation
  • Business is relocating
156
Q

What is internal recruitment and examples?

A

Advertising and offering a job within the business and recruiting someone who is already an employee
- Email, flyers, notice board, intranet

157
Q

What is external recruitment and examples?

A

Advertising a job to anyone and recruiting someone who doesn’t work for the business - Online, social media, businesses website

158
Q

Internal recruitment examples

A

promotion/transfer
notice board
personal recommendation

159
Q

External recruitment examples

A

Recruitment agencies

Job centres

160
Q

Internal recruitment benefits

A

Cheaper - don’t need to pay for induction training - low advertising costs

Promotion/Varied job opportunities can be used to motivate employees

161
Q

Internal recruitment drawbacks

A

Another vacancy may be create as a result

Ideas generated may stagnate due to lack of new employees and new ideas in the company

162
Q

External recruitment benefits

A

A bigger choice of alternative candidates

New ideas and perspectives

163
Q

External recruitment drawbacks

A

Expensive and time consuming
Induction training costs
Don’t know the person

164
Q

What are the stages of recruitment?

A

Write job description, person specification
Shortlist applicants based on CV’s
Use selection methods
Shortlisted candidates are interviewed
Another recruitment activity - psychometric test

165
Q

Psychometric testing

A

To see if their personality and attitudes fit with the business culture

166
Q

Aptitude test

A

To test a candidates skills/ abilities

167
Q

In tray exercises

A

May have to complete skills in a certain time

168
Q

Skills test + and -

A

Selects the person best suited

May put people off with lots of tests

169
Q

Telephone interview + and -

A

Quick and easy

may not get a full representation of the person

170
Q

Costs of recruitment and selection

A

lost output from replacing an employee
Logistical cost of running a recruitment and selection process
advert
agency fees
Loss of productivity while new employee inducted
Loss of management time
Hidden costs - up to half of all employees leaves within first year

171
Q

Training

A

The process of equipping employees with the skills and knowledge necessary to carry out their job efficiently

172
Q

On the job training

A

Where an employee learns in the workplace from experienced employees

173
Q

Off the job training

A

Which is any form of education that takes place outside of the workplace

174
Q

Why is it important to train employees?

A

Ensure they have skills to conduct their work efficiently
Provides a sense of motivation- increase skill level
Reflects externally - business is viewed as a desirable place to work for - increases candidate pool for recruitment and selection

175
Q

What are the costs of training?

A

Productivity time lost by the employee receiving training
Productivity time lost by a second employee if training is provided in the house
Fees paid to an external training provider plus employees travel cost

176
Q

What does induction training include?

A

Information on important policies and procedures such as health and safety
a tour of the organisation and an introduction to colleagues.
Details of employment; payment arrangements, holiday entitlements

177
Q

Methods of on the job training

A

Demonstration/instruction showing the trainee how to do the job
Coaching - intensive training that involves a close working relationship between an experienced employee and the trainee

178
Q

Job rotation

A

Trainee given jobs in several roles in succession to gain experience of a wide range of activities

179
Q

Projects team

A

Employees join a project team - gives the exposure to other parts oft the business and allows them to take part in new activities

180
Q

Off the job methods

A
  • Day or part time attendance at college
  • Professional development courses
  • Online or distance learning
  • Sandwich courses
  • Sponsored courses
  • Self-study, computer based training
181
Q

On the job positives

A
  • Tailored to the businesses way of working
  • Saves time and money instead of sending people out
  • Trainee faced with real life scenarios
  • No need to pay pro trainee
  • Motivation as employee hands on straight away
182
Q

On the job negatives

A
  • Risk of expensive errors -customer service
  • can be distracting to other employees
  • potential to pick up bad habits
  • loss of productivity
183
Q

off the job benefits

A
  • Employer likely to train others at the same time
  • Opportunity to use specialist trainers which can raise standards
  • Raise awareness of the importance of training
  • Can concentrate without the pressures of work
184
Q

Off the job drawbacks

A
  • May often be unsupervised or away from control of supervisors
  • Costs of having a skilled trainer
  • Worker is unproductive while training is taking place
185
Q

What does staff as an asset mean?

A
  • Treat employees as the most important resource, a source of competitive advantage
  • Treated as individuals and their needs are planned accordingly
186
Q

What does staff as a cost mean?

A
  • Treat employees simply as a resource of the business

- Strong link with corporate business planning

187
Q

Staff as a cost- key features

A
  • minimal communication from top down
  • pay -enough to recruit and to retain staff
  • Appraisal systems
  • Tall structure
  • Autocratic leadership style
188
Q

Staff as an asset - key features

A
  • flat structure
  • democratic style
  • employees are empowered and encourages to seek delegation and takes responsibility
189
Q

Staff as a Cost - benefits

A
  • start up may lack finance so need to focus on costs - competitive markets are price sensitive
  • May result in more cost effective workforce where decision making is quicker and focussed on senior management
190
Q

Staff as a cost - drawbacks

A

-cost based approach might expect to suffer from higher absenteeism and staff turnover and less successful recruitment

191
Q

Staff as an asset - benefits

A

Rewards employees performance and motivates staff more effectively - increase productivity, less staff turnover, less cost for recruitment

192
Q

Staff as an asset - drawbacks

A

Being too soft when all the employee benefits are added up, the cost of the workforce may leave a business at a competitive disadvantage.

193
Q

Flexible working

A

Working arrangements were there are a variety of options offered to employees in terms of working time, working location, and the pattern of working

194
Q

Part time

A

Describes various methods of employing people who don’t work a full working week

195
Q

Home working

A

People working from their home or from other premises, for payment

196
Q

Flexible hours

A

Give employees some choices over the actual times they work their contracted hours

197
Q

Multi-skilling

A

Where staff are allowed to carry out a variety of tasks rather than specialise

198
Q

Outsourcing

A

Delegating one or more business processes to an external provider.

199
Q

Examples of flexible working

A

Flexitime, Team -time working, work from home

Career breaks

200
Q

Positives of flexible workforce

A
  • Reduce costs - part time and peak time
  • Retain staff - staff can fit job around other commitments
  • Access to a bigger pool of people
  • Productivity may increase due to high motivation being in a relaxed environment
  • costs saving through office space
  • multiskilling so less staff needed
  • Job shares to reduce redundancies
  • less travel time to and from work
201
Q

Negatives of flexible workforce

A
  • difficult to communicate
  • may lack communication -homeworking
  • decrease productivity - informal environment
  • Admin to set up flexible hours
  • Inability to substitute for certain skills if certain employees are absent
202
Q

Multi-skilling

A

Where staff are allowed to carry out a variety of tasks rather than specialise. Common in service sectors

203
Q

Positives of multi - skilling

A

enables greater use of job rotation - increases motivation

204
Q

Negatives of multi-skilling

A

Requires more training

205
Q

Temporary staff

A

Where staff are on a contact with a fixed length

206
Q

Negatives of temporary staff

A

Often have less rights and hiring and firing is cheaper so is easier
May not be fully committed, may not understand the business aims and culture
Relying on temps can be a sign that there is a problem with recruitment and retention

207
Q

Dismissal

A

gross misconduct or poor performance of an individual

208
Q

Redundancy

A

the job no longer exists

209
Q

Outsourcing

A

Delegating one or more business processes to an external provider, who then owns, manages and adminsiters the selected processes to an agreed standard
- used if the job is not the core function of the business

210
Q

Positives of outsourcing

A

Enables the business to focus on its primary function

A contractor may have more expertise and greater economies of scale in this function

211
Q

Negatives of outsourcing

A

Outsourced businesses don’t necessarily share your companies culture, vision or goals or ‘go the extra mile’.
If you have signed a contract with the business then your supplier may get complacent and service levels may fail

212
Q

Off-shoring

A

The work is done overseas by your own business

213
Q

Outsource

A

Someone else does the work for you

214
Q

Demand

A

The amount of a product that will be bought to a given price level

215
Q

Demand curve

A

Shows how much will be consumed of a good at each and every price level
- there is generally a negative relationship between a price and quantity demanded

216
Q

Shift to the right

A

Increase in demand

217
Q

Shift to the left

A

Decrease in demand

218
Q

How do you find the revenue from a demand curve?

A

The area under the price and quantity

219
Q

Factors that increase demand

A

Increase in income
Advertising campaign
Summer/xmas - seasonal

220
Q

Substitute

A

An alternative to a product

There is a positive relationship between the price of a substitute and demand for a good

221
Q

Complement

A

Is a good that is bought with another good

There is a negative relationship between the price of a complement and demand for a good

222
Q

Inferior goods

A

One where demand falls as income rises

If income falls, demand falls

223
Q

Normal goods

A

a good where demand rises as income rises

224
Q

Factors that affect demand

A
  • Changes in prices of substitutes and complementary goods
  • changes in consumer incomes
  • fashion, trends and preferences
  • advertising and branding
  • demographics
  • seasonality
  • external shocks
225
Q

Supply

A

The number of goods and services producers are willing and able to supply at any given price

226
Q

What does price change cause?

A

it causes a movement along the curve - direct relationship

227
Q

Supply curve - shift to left

A

decrease in supply

228
Q

Supply curve - shift to right

A

increase in supply

229
Q

Supply - new technology

A

Increase in supply

230
Q

Supply - Increase in production costs

A

decrease in supply

231
Q

Supply curve

A

A graphical representation of the relationship between quantity supplied and price for all suppliers

232
Q

Determinants for supply

A
  • Changing costs of production
  • Technological processes
  • prices of other goods and services
  • other factors- expectations (weather)
  • government policy - taxes and subsides
233
Q

When are supply and demand equal? What is this called?

A

When output Q1 and price P1 - Equilibrium is determined by the point where supply and demand meet

234
Q

What is price elasticity of demand (PED)?

A

PED is a measure of how sensitive customers are to a change in price

235
Q

Inelastic

A

If a customer isn’t sensitive

236
Q

Elastic

A

If a customer is sensitive

237
Q

Why do businesses need to know PED?

A

To forecast what will happen to sales volume and sales revenue if they change their price
Understanding PED helps a business to set its prices to achieve its revenue budget, in order to deliver its cash flow forecast and profit budgets.

238
Q

How do you calculate PED?

A

PED = % change in Quantity demanded / % change in price

239
Q

Percentage change

A

(new-old)/old x 100

240
Q

PED = 0

A

Perfectly inelastic

- this means that when the price changes there is zero change in quantity demanded (theoretical)

241
Q

PED = 0 to -1

A

Inelastic

- This means that quantity demanded changed by proportionally less than the change in price - cigarettes and petrol

242
Q

PED = Exactly -1

A

Unitary

-This means that the % change in price was exactly the same as the % in quantity

243
Q

PED = -1 and up

A

Elastic
- The quantity demanded change proportionally more than the change in price - luxuries, goods with lots of substitutes, little brand loyalty

244
Q

PED = Infinity

A

Elastic

- The quantity demanded changes infinitely when the price changed (theoretical only)

245
Q

Factors determining PED

A
  • Availability of consumer substitutes
  • Necessity or luxury
  • Proportion of income spent
  • Loyalty
  • Time/habits
246
Q

Income elasticity of demand

A

Measures the responsiveness of demand to a change in income Y

247
Q

How do you calculate YED?

A

YED = % Change Quantity demanded/ % change in income

248
Q

What does a negative YED mean?

A

Inferior good - one where demand falls as income increases

-demand rises as income falls

249
Q

What does a positive YED mean?

A

Normal good

  • one where demand increases as income increases
  • demand falls as income falls
250
Q

How does price change demand?

-income, value

A

Higher the price:

  • the less people are able to afford it
  • the less good value the product has compared other ways of spending the money
  • shows the value of the product, low prices should increase sales but firms must be aware of ruining image for quality
251
Q

How does prices for substitutes change demand?

A

Success of one is at the the expense of the other

-as competitors increase price, decrease price to increase sales

252
Q

How does prices for changes in consumer income affect demand?

A

Normal goods - as average income increases, demand increases
Inferior goods - as average income increase, demand falls

253
Q

Advertising and branding - how does it affect demand?

A

Advertising can boost demand

  • long term - branding is more important that advertising, as it is important for customer loyalty if the customer is dedicated to the business
  • The value of a brand is its ability to demand for higher price and to achieve high levels of customer loyalty
254
Q

Demographics - how does it affect demand?

A

Demographics breaks down the population data

-the biggest opportunity is older people

255
Q

External shocks - how does this affect demand?

A

Natural disasters - flooding UK
a change in law - sugar tax on drinks
unexpected change of mind of a large customer or supplier

256
Q

Seasonal factors - how does this affect demand?

A

A well run business can predict the seasonal variations in demand; and then has a plan for coping

257
Q

Demand risks - undiversified demand

A

This occurs when a business relies on just on product

  • puts the business in a vulnerable position as it could lead to high costs for external shocks
  • Spread risk by finding new sources of demand and being less reliant on one single resource
258
Q

Demand risks - overtrading

A

Some businesses grow so fast they can’t find the cash to meet the rising bills due to the rising production levels
- meeting next months demands requires extra cash today for materials and staff.

259
Q

How does changes to cost of production change supply?

A

cost of production includes materials, rent, salaries and advertising
The higher the cost the lower the incentive to supply because the higher the costs the lower the profit per unit.
- if all competitors face cost increase, you may assume that if everyone puts their prices up, market share figures will remain the same.

260
Q

Introduction to new technology - how does this affect supply?

A

Significant affect on costs of production and efficiency
- a large increase in the supply of machinery can lower production costs and boost production capacity - supply is cheaper and more of it - cost of sales decrease, higher profit

261
Q

Government subsides - how does this affect supply?

A

The government handout to a supplier e.g farmer

  • this is where the government want to promote supply and therefore gives business a financial contribution for supply
  • subsides encourage extra supply
262
Q

External shocks - how does this affect supply?

A

Natural disaster - can disrupt supply lines causing particular problems for manufacturers or retailers who choose to carry very low stock
- a supply shortage leads to price rise

263
Q

Indirect taxes - how does this affect supply?

A

Taxes that are levied by government on goods and services - 20% VAT
- duty tax - put onto goods that are socially undesirable, petrol and alcohol - if the government decide to increase the duty on petrol, this would add to the cost of supply therefore oil companies would wish to supply less petrol to the market - pushes price up

264
Q

Physical constraints - how does this affect supply?

A

KFC - switched to a cheaper distribution company which left fresh chicken in the warehouse
-without physical supplies they had to close

265
Q

Markets

A

a market is any place that buyers and sellers

Business (64 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions