Theme 2: Building a Business Flashcards
what are the features of a hierarchical structure?
-lots of layers
-narrow span of control
-more expensive
-worse communication
-larger chain of command
what are the features of a flat structure?
-few layers
-wide span of control
-less expensive
-better communication
-smaller chain of command
why use a centralised structure?
helps business keep control of key business decisions and strategic overview
why use a decentralised structure?
allows the local branch of the business make decisions tailored in context
why use a flat structure?
reduce layers of management
what is internal comms?
comms between people in same business
what is external comms?
comms between people in separate businesses.
give examples of internal comms
payslip, meetings, teams, email
give examples of external comms
social media, brochures, sponsorships
what does induction training do?
- familiarise
- safety training
- rules and procedures
why is induction training important?
- allows employers to get to know their employees
- leads to better efficiency
- better safety
what does on-the-job training consist of?
- shadowing
- mentoring
- job rotation
- self-study
what does of-the-job training consist of?
- classroom environment
- online courses
- apprenticeships
(provided by an external provider)
how can informal training become formal?
when given a formal qualification at the end
define appraisals?
performance reviews by line manager (constant reviews = ongoing training)
what are the +ves of on- the-job training?
- practical experience
- can easily rectify mistakes
- more specific job info
-ves of on-the-job training
- too specific
- no formal qualification
- uses resources
+ves of off-the-job training
- evidence of successful training (qualification)
- flexibility (online
- staff not deployed
- transferable skillset
-ves of off-the-job training
- more expensive
- no evidence of understanding
- no practical skills gaining
what is considered a good retention rate?
> 90%
how can a business grow?
- innovation
- entering new markets
- buy out/merge with competitors
how do we measure growth?
- how many sales/turnover?
- output increasing?
- outlets increasing?
what is another way of saying internal growth?
organic growth
what is another way of saying external growth?
inorganic growth
what are different methods of internal growth?
- opening new outlets
- expansion overseas
- taking advantage of tech
- changing marketing mix
what are different methods of external growth?
- takeovers
- mergers
define globalisation
the free movement of good, services, people, capital, IT and ideas; enabling businesses to sell their products anywhere in the world
what is the EEC?
European economic community
what are the +ves of globalisation?
- increased market
- access to cheaper labour
- transfer of knowledge, skills and tech
- better efficiency due to increased levels of competition
what are the -ves of globalisation?
- whole industry closures
- international competitors with cheaper costs
- can be unethical (working conditions)
why does international trade matter?
exports and imports generate revenue for businesses in different countries leading to business growth
+ves of behaving ethically
- improved brand image
- improved reputation
- increased staff retention
- more sources of finance
-ves of behaving ethically
- higher costs
- danger of building false expectations
- bad publicity if found to be unethical
