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Business > Understanding Business > Flashcards

Understanding Business Flashcards

1
Q

Advantages of flat structure

A

.information flows quickly
.consulting staff on decisions takes less time
.business is able to respond to market change
.customers needs are delt with quickly

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2
Q

Impacts of competitive (pestec) have on an organisation

A

.opening up a store next to a competitor can bring choice for customers and trains in the area
.business may have to reduce their prices or may lose customers
.competition can launch new products to keep up

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3
Q

What is meant by boom

A

Demand is high and businesses can take advantage of the demand by increasing prices which will increase profits

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4
Q

What is meant by Recession

A

Unemployment is high and so demand falls. Businesses can take advantage of low credit rates and interest rates changed during this time
.may need to make staff redundant to survive

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5
Q

What is meant by Recovery

A

Sales will increase as more employment and spending
Businesses can develop new products and start to raise prices
May find it difficult to recruit new staff

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6
Q

Who owns and controlled Public Limited Companies

A

Owned- minimum of 2 shareholders

Controlled- by board of directors

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7
Q

What businesses are in the public sector

A

NHS, police, fire services, sqa etc

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8
Q

How are businesses in the public sector financed

A

Via taxes payed by the public

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9
Q

What are the main objectives of businesses in the public sector

A

To provide essential services and make effective use of their funds

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10
Q

Who controls the public sector

A

Central and local government

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11
Q

Impacts political (pestec) have on an organisation

A

Can have an impact on the economy as a whole and on an individual business
Eg- changes to laws, increased tax rate etc

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12
Q

What do businesses want to grow

A

.To reduce the risk of failure
.ti gain a better reputation
.to remove a competitor
.to increase profit/sales

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13
Q

Impact technology (pestec) have on an organisation

A 
Increased use of 
.social media 
.smart phones 
.mobile pay 
.order tracking
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14
Q

Impacts environmental (pestec) has on an organisation

A 
.weather 
.recycling 
.pollution 
.ethical souring
.reducing packaging
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15
Q

I’m so ya that social (pestec) have on an organisation

A

.chAnges in shopping habits (more online shopping, Apple Pay etc)
.ageing population (must cater for older members)
.lifestyle changes
.constant changes in fanshion

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16
Q

What is meant by outsourcing

A

When a business employs an outsider to carry out certain activities

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17
Q

What is internal growth

A

Growth from with in the business.

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18
Q

What is external growth

A

Growth form out with the business

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19
Q

Impacts the economic (pestec)

Has on a organisation

A

When the economy is doing well, customers are likely to buy more increasing sales and profits

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20
Q

Disadvantage of external growth

A

.there is more of a risk

.usually more expensive

21
Q

What is menat by corporate social responsibility

A

Whne a business aims in an ethical way so that they benefit society or the environment

22
Q

What is meant by Satisficing

A

Aiming for a Satisficing result rather than the best possible allows survival rather than profit maximisations
This satisfies shareholders, suppliers and employees

23
Q

Advantages of using questionnaires

A

. Relatively in expensive

.People can be targeted in large areas

24
Q

What are the main objectives

A 
. Maximise profits
. Survival.
Provide a quality service
. Increase market share.
. Growth
25
Q

What is meant by managerial objectives

A

Working within a budget-When manager set objectives they believe this will improve the status of the company. Sticking to annual budget

26
Q

What is growth with in business

A

To make a

business larger

27
Q

Disadvantages of internal growth

A

Slower growth

28
Q

Disadvantages of public sector organisation

A

. Often considered to be Bureaucratic
. As no profits motivate, can be lack of innovation 
. A change in government is likely to mean a change in priorities

29
Q

What is meant by delayering

A

Removing levels of management
. Although people lose their jobs, communication and decision-making would be faster, reduces costs of salaries and increases staff empowerment

30
Q

Ways of measuring success

A

Profit levels, sale levels, staff absence levels, feedback, researching reviews

31
Q

Disadvantages of tall structure

A

. Not adapting to changes quickly can make the business vulnerable
. Decisions making takes a long time as every level has to be consulted
Communication can be slow, not meeting customers needs quickly

32
Q

Advantages of tall structure

A

. Great deal of control and supervision
. Clearly defined roles
. All members of staff are supervised
. Staff have the chance to become experts in their role

33
Q

Advantages of public sector organisations

A

. Essential services are provided to all customers
. Faces little competition
. Provides employment
. Provide services for those in the community who can’t afford

34
Q

Disadvantages of public limited companies

A

. Have no control over who buys shares of the business
. Formation expensive
. Must publish accounts
. May become too large to manage
. Decisions are difficult and take one to make

35
Q

Advantages of a public limited company

A 
. Access to more capital then private limited company
. Employs specialists
. Limited liability
. Company doesn’t die of owner dies
. Can dominate market due to size
36
Q

What are the objectives of public limited companies

A

To maximise sales, maximise profits, grow and market dominance

37
Q

Tall structure (hierarchical)

A

. Many layers of management
. Long chain of command
. Each manager has a narrow span of control
.Information on decisions need to go through each level

38
Q

How are public limited companies finance

A

By shareholders investment, new shareholders, bank loan, retained profits

39
Q

What is the fiscal policy

A

Increase in income tax rates – customers have less money to spend
Increasing VAT-selling prices may have to be raised
increasing corporation tax-Will reduce the profit for the year

40
Q

What is monetary policy

A

Increase/decrease rates (borrowing money)

41
Q

The role of a manager (motivate)

A

Encourage workers by helping them enjoy their tasks through teamwork, participation in decision-making, giving then responsibilities

42
Q

The role of manager (control)

A

Looking at what has been done check it against what was expected and make any necessary adjustments

43
Q

Flat structure

A

.Only a few levels of management
. Short chain of command
. Managers have a wider span of control
.Managers are directly responsible for more employees

44
Q

Disadvantages of flat structure

A

.Removal of managers means there is less control throughout the business
.Mistakes are easier to make

45
Q

The role of a manager (delegate)

A

Given subordinates The authority to carry out tasks. This helps with motivation and reduces the manager workload

46
Q

The rule of a manager (plan)

A

Looking ahead see and potential opportunities or problems and devising solutions setting targets and aims

47
Q

The role of a manager (command)

A

Issuing instructions, motivating staff on displaying leadership

48
Q

The role of a manager (organise)

A

Arranging resources of the organisation to be there and people need them and acquiring additional resources if needed

49
Q

The role of a manager (coordinate)

A

Making sure everyone is working towards the same goals, but all the work being done is together and people are not duplicating work or working against each other

Business (5 decks)

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