understanding business Flashcards
what are the sectors of industry
primary - natural recourses
secondary - manufacturing
tertiary- service
quaternary- technical services
what are the sectors of economy
private - private business
public - government related
third- charity non profitable organisations
private limited company
small organisations led usually by small shareholders/family
public limited company
its managed by directors and owned by share holders. eg. microsoft/google
public sector
portion of the economy composed of all levels of government and government-controlled enterprises.
third voluntary sector
non-profit organisation. eg cancer research
franchisor
an individual or company that sells or grants a franchise for the sale of goods or the operation of a service.
multi national company
companies that operate in a number of countries around the world.
whats the objective of a public sector company
efficiency they try to use their rescources without wasting
essential services
customer satisfaction
equity- delivering services fairly
what’s a private sector’s objectives
they aim to achieve growth
innovation- aim to grow business
profit maximisation
customer satisfaction
third/voluntary sector objectives
raise funds
to create a social impact
to help a cause
to help improve peoples wellbeing
what are the methods of CSR
coporate social responsiblity
they ensure they are economically responsible
there are ethical and environmenth responsibilities
what r the advantages and disadvantages of CSR
a - positive brand image, cost savings
d - economic burden, time consuming
what are some external methods of growth
- mergers
- takeovers
- horizontal integration
-vertical integration - lateral
-conglomerate
delayering
removing a level of heirachy
a- lowers costs
d- wider span of controls more pressure
functional grouping
organising firms into departments based on their core activities
a - les duplication of recourses
d - lack of coordination
downsizing
closes down or merges aspects of their operation
a - lowered costs
d - conflict between workers
customer grouping
divides its operation by types of customers
a - loyal customers
d - can cause competition between departments
location/geographical grouping
divides its operation by geological areas
a - communication is better
d - high costs due to duplication
technological grouping
divides by type of technology required
a - costs may be reduced
d - high costs of training
chain of command
how many people commands must pass through before reaching the desired person
span of controls
the number of people who report to a manager
flat structure
fewer levels of management
a - quick communication and decision making
d - less promotion opportunities -> may cause staff demotivation
tall structure
many levels of management
long chain of commands
a - staff gain support from line manager
d - many level of hierarchy, slow communication
