Theme 2: Building a Business

Question 1

what are the features of a hierarchical structure?

Answer 1

-lots of layers
-narrow span of control
-more expensive
-worse communication
-larger chain of command

Question 2

what are the features of a flat structure?

Answer 2

-few layers
-wide span of control
-less expensive
-better communication
-smaller chain of command

Question 3

why use a centralised structure?

Answer 3

helps business keep control of key business decisions and strategic overview

Question 4

why use a decentralised structure?

Answer 4

allows the local branch of the business make decisions tailored in context

Question 5

why use a flat structure?

Answer 5

reduce layers of management

Question 6

what is internal comms?

Answer 6

comms between people in same business

Question 7

what is external comms?

Answer 7

comms between people in separate businesses.

Question 8

give examples of internal comms

Answer 8

payslip, meetings, teams, email

Question 9

give examples of external comms

Answer 9

social media, brochures, sponsorships

Question 10

what does induction training do?

Answer 10

• familiarise
• safety training
• rules and procedures

Question 11

why is induction training important?

Answer 11

• allows employers to get to know their employees
• leads to better efficiency
• better safety

Question 12

what does on-the-job training consist of?

Answer 12

• shadowing
• mentoring
• job rotation
• self-study

Question 13

what does of-the-job training consist of?

Answer 13

• classroom environment
• online courses
• apprenticeships
  (provided by an external provider)

Question 14

how can informal training become formal?

Answer 14

when given a formal qualification at the end

Question 15

define appraisals?

Answer 15

performance reviews by line manager (constant reviews = ongoing training)

Question 16

what are the +ves of on- the-job training?

Answer 16

• practical experience
• can easily rectify mistakes
• more specific job info

Question 17

-ves of on-the-job training

Answer 17

• too specific
• no formal qualification
• uses resources

Question 18

+ves of off-the-job training

Answer 18

• evidence of successful training (qualification)
• flexibility (online
• staff not deployed
• transferable skillset

Question 19

-ves of off-the-job training

Answer 19

• more expensive
• no evidence of understanding
• no practical skills gaining

Question 20

what is considered a good retention rate?

Answer 20

> 90%

Question 21

how can a business grow?

Answer 21

• innovation
• entering new markets
• buy out/merge with competitors

Question 22

how do we measure growth?

Answer 22

• how many sales/turnover?
• output increasing?
• outlets increasing?

Question 23

what is another way of saying internal growth?

Answer 23

organic growth

Question 24

what is another way of saying external growth?

Answer 24

inorganic growth

Question 25

what are different methods of internal growth?

Answer 25

• opening new outlets
• expansion overseas
• taking advantage of tech
• changing marketing mix

Question 26

what are different methods of external growth?

Answer 26

• takeovers
• mergers

Question 27

define globalisation

Answer 27

the free movement of good, services, people, capital, IT and ideas; enabling businesses to sell their products anywhere in the world

Question 28

what is the EEC?

Answer 28

European economic community

Question 29

what are the +ves of globalisation?

Answer 29

• increased market
• access to cheaper labour
• transfer of knowledge, skills and tech
• better efficiency due to increased levels of competition

Question 30

what are the -ves of globalisation?

Answer 30

• whole industry closures
• international competitors with cheaper costs
• can be unethical (working conditions)

Question 31

why does international trade matter?

Answer 31

exports and imports generate revenue for businesses in different countries leading to business growth

Question 32

+ves of behaving ethically

Answer 32

• improved brand image
• improved reputation
• increased staff retention
• more sources of finance

Question 33

-ves of behaving ethically

Answer 33

• higher costs
• danger of building false expectations
• bad publicity if found to be unethical