Understanding Business Flashcards

Question

How is a corporate culture communicated?

Answer 1

``` Staff training YouTube videos Uniform Social events Company events Honouring employees ```

Answer 2

``` Political Economic Social Technological Environmental Competition ```

Answer 3

Political - A change in, or introduction of, a new law. this may reduce restrictions on trade and allow the business to gain greater sales and profit Economic - Changes to economic policies by the government. This may restrict the ability of banks to lend money which may cause cash flow problems. Social - changes in fashion trends and taste. A business can take advantage of new opportunities by producing products that customers demand, increasing sales. Technological - new piece of technology becomes available. Technology can be expensive to purchase and maintain, which could result in less profit Environmental - changes in weather. Depending on a certain product, the temp may increase demand, increasing sales. Competition - competitor introducing a new product. Gives customers a wide range of products to choose from.

Answer 4

Internal: People inside the business who are interested in influencing its activities because it affects them in some way. - employees, managers, owners. External: People outside the business who are interested in influencing its activities because it affects them in some way - government, banks, customers, suppliers, the local community.

Answer 5

When someone internal or external in a business are dependent on each other

Answer 6

Owners want to pay employees low wages to maximise profit whereas employees want high wages to have a high standard of living.

Answer 7

Strategic - long term, made by senior managers, concern the overall objectives and direction of business. Example - to expand into a new country Tactical - Medium term, made by middle managers (Head of department), concern to achieve the strategic decisions of the business. Example - to bring out a new product Operational - short term, made by junior managers, concern the day to day activities of the business. Example - training, working hours.

Answer 8

``` Planning Organising Controlling Co-ordinating Commanding Delegating Motivation ``` (POCCC DM)

Answer 9

1. Check to see if objectives have been reached 2. Look at financial info 3. As employees - they're implementing decision 4. Ask customers

Answer 10

1. More skilled + experienced 2. Have an overview of entire organisation 3. Have significant knowledge of the market they operate 4. High up in business

Answer 11

- A change in, or introduction of, a new law. - A change in amount of tax to be paid - New gov targets to protect environment

Answer 12

- No. Of people unemployed - Change in interest rate - Changes to economic policies by gov

Answer 13

- Changes in fashion trends and taste - Changes in demographics - Increase in no. of family friendly arrangements employers need to offer

Answer 14

- New piece of technology | - Growth of s - commerce

Answer 15

- Changes in weather | - Increased pressure to recycle

Answer 16

- New competitor entering market | - Competitor introducing new product

Answer 17

``` P - Identify the problem O - Identify the objectives G - Gather information A - Analyse information D - Devise possible solutions S - Solve the problem C - Communicate the decision I - Implement the decision E - Evaluate effectiveness ```

Answer 18

A business that has operations in more than one country. | They have a home country and subsidery offices

Answer 19

- Health and safety legislation may be more relaxed in other countries - don't have to spend as much to comply with them = decreased costs - Access to a larger market, can sell products in countries they operate = increased sales - Lower labour costs in some countries, especially in developing countries due to lower costs of living = decreased costs

Answer 20

- Different cultures and language barriers can cause problems in communication = slower decision making - lower productivity. - Lots of different legislation to comply with in each country - time consuming and expensive to lay lawyers - Changing exchange rates between countries can cause problems in calculating costs and profits may lead to wrong decisions being made

Answer 21

Advantages: - Understand needs and wants of the customer better leading to higher customer satisfaction - repeat sales - Relationship can be developed between the business and the customer - brand loyalty - repeat sales - Can respond to changes in the external environment quicker Disadvantages: - Expensive due to duplication of resources - If the contact leaves: loss of continuity - Need to create new grouping for new customer = expensive due to staffing/ resources