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business higher > topic 1 understanding business > Flashcards

topic 1 understanding business Flashcards

1
Q

what are the sectors of industry

A

primary - natural recourses
secondary - manufacturing
tertiary- service
quaternary- technical services

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2
Q

what are the sectors of economy

A

private - private business
public - government related
third- charity non profitable organisations

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3
Q

private limited company

A

small organisations led usually by small shareholders/family

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4
Q

public limited company

A

its managed by directors and owned by share holders. eg. microsoft/google

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5
Q

public sector

A

portion of the economy composed of all levels of government and government-controlled enterprises.

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6
Q

third voluntary sector

A

non-profit organisation. eg cancer research

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7
Q

franchisor

A

an individual or company that sells or grants a franchise for the sale of goods or the operation of a service.

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8
Q

multi national company

A

companies that operate in a number of countries around the world.

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9
Q

whats the objective of a public sector company

A

efficiency they try to use their rescources without wasting
essential services
customer satisfaction
equity- delivering services fairly

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10
Q

what’s a private sector’s objectives

A

they aim to achieve growth
innovation- aim to grow business
profit maximisation
customer satisfaction

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11
Q

third/voluntary sector objectives

A

raise funds
to create a social impact
to help a cause
to help improve peoples wellbeing

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12
Q

what are the methods of CSR

A

coporate social responsiblity
they ensure they are economically responsible
there are ethical and environmenth responsibilities

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13
Q

what r the advantages and disadvantages of CSR

A

a - positive brand image, cost savings
d - economic burden, time consuming

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14
Q

what are some external methods of growth

A
  • mergers
  • takeovers
  • horizontal integration
    -vertical integration
  • lateral
    -conglomerate
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15
Q

delayering

A

removing a level of heirachy
a- lowers costs
d- wider span of controls more pressure

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16
Q

functional grouping

A

organising firms into departments based on their core activities
a - les duplication of recourses
d - lack of coordination

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16
Q

downsizing

A

closes down or merges aspects of their operation
a - lowered costs
d - conflict between workers

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17
Q

customer grouping

A

divides its operation by types of customers
a - loyal customers
d - can cause competition between departments

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18
Q

location/geographical grouping

A

divides its operation by geological areas
a - communication is better
d - high costs due to duplication

19
Q

technological grouping

A

divides by type of technology required
a - costs may be reduced
d - high costs of training

20
Q

chain of command

A

how many people commands must pass through before reaching the desired person

21
Q

span of controls

A

the number of people who report to a manager

22
Q

flat structure

A

fewer levels of management
a - quick communication and decision making
d - less promotion opportunities -> may cause staff demotivation

23
Q

tall structure

A

many levels of management
long chain of commands
a - staff gain support from line manager
d - many level of hierarchy, slow communication

24
Q

centralised structure

A

control and decisions made by the management (HQ)
a - the places will operate the same
d - less responsive to local pressure/ demands

25
Q

decentralised structure

A

control and decisions making re delegated to departments
a - effective resources allocation
d - can negatively impact the flow in formation within a business

26
Q

matrix structure

A

project team to carry out specific task
employees report to multiple bases rather than one
a - different view points
d - very expensive

27
Q
A
28
Q

what are the types of methods of growth businesses may use

A
  • vertical integration
  • horizontal integration
  • organic growth
29
Q

whats forward vertical integration

A

a company takes over another company at a later stage
a - garauntees an outlet
d - may affect core activities

30
Q

backward vertical integration

A

businesses take over a company at an earlier stage

31
Q

horizontal integration

A

two companies at the same stage of production process merge/takeover
a - removes a competitor
d - expensive to buy a new company

32
Q

organic growth

A

happens naturally
a - less risky
d - slow

33
Q

what r the objectives of business

A
  • satisfaction
  • managerial objectives (ie working within a budget / increasing in salary or position)
  • growth
34
Q

what are the ways to achieve growth

A
  • takeover
  • franchising
  • internal / organic growth
  • become a multi national company
  • merger
  • takeover
35
Q

what r the ways to fund growth

A
  • divestment (when a company sells its assets
  • asset stripping ( a company is purchased for its assets )
  • outscourisng
  • retained profit
  • buy - out
  • buy in
  • demerger
36
Q

whats the different with a buy out and a buy-in

A

a buy-out is when someones buys the company from the inside such as a manager
a buy-in is when someone buys the company from the outside

37
Q

what are the external factors that might affect a business

A
  • political
  • environmental
  • social
  • technological
  • economic
  • competition
38
Q

what r the internal factors that can affect a firm

A

staff
finance
technology
corporate culture

39
Q

what are stakeholders

A

are people with a key interest in the success of the business

40
Q

who can be a stakeholder

A

external - customers, banking, suppliers, investors
internal - owners, management, employees

41
Q

whats a conflict of interest

A

when 2 stakeholders want different things from the business

42
Q

what are the types of decisions

A

stragetic done by senior management, complex
tactical , done by middle management, less complex
operational, junior management, day to day decisions, simple

43
Q

what r factors affecting the quality of decisions

A

human recourses
technology
funding
company policy
time constraints

44
Q

how to measure how affective a decision was

A

measuring sale levels
analysing profit values
customer feedback

45
Q

what is the role of managers

A

plan
organise
cooperate
command
co-ordinate
delegate
motivate

business higher (2 decks)

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