UNDERSTANDING BUSINESS #1 Flashcards
Describe the 4 sectors of industry
This was a random question one year
Describe / compare the features of different types of organisations (1 of 2)
Describe / compare the features of different types of organisations (2 of 2)
Describe the methods of growth (1 of 2)
Describe the methods of growth (2 of 2)
Discuss the advantages & disadvantages of Outsourcing (a way to fund growth)
Advantages:
* Fewer employees are required - may lead to cost savings
* Allows organisations to focus on their core activities - meaning this can be improved
* You only need to pay for the service when required - can reduce costs
* Can source specialist labour that mat not be available otherwise
* Can source specialist equipment that would be too expensive to purchase
Disadvanges:
* Private firms could increase costs - meaning … e.g. lower profitability, cashflow …
* Loss of control over activites - could result in quality issues
* May result in confidentiality issues - result in fines
Discuss the External Factors impacting organisations
Distinguish between the different types of decisions
Describe the ways in which a manager can measure the success of a decision
- Research customer’s opinions using surveys
- Gather feedback from staff at meetings
- Assess the situation to see if the problem has been solved
- Compare the sales / profits from before and after the decision was made
- Review the number of complaints made
Describe / discuss the different types of structures within organisations
Discuss the use of geographical groupings
Discuss Costs and Benefits of Fairtrade
ADVANTAGES:
- Fairtrade certification improves the image of the company
- Attracts consumers who have positive attitudes towards products that are ethically made
- The Fairtrade trademark can be used as a marketing tool
- Higher prices can be charged for Fairtrade products
- May attract staff who wish to work for an ethical company
DISADVANTAGES
- Products tend to be more expenive
- Time consuming and costly to become certified
This question has been asked twice
How do companies demonstrate CSR / that they are socially responsible
Why do companies become environmentally responsible
- It reduces running costs - the money saved can be reinvested or given to shareholders as dividends
- The company may have an objective to be a ‘green’ company. This will present a good image.
- Carbon emissions will be reduced, and this will attract those customers who care about the environment.
