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Business > Unit 1: Business Organization & Environment > Flashcards

Unit 1: Business Organization & Environment Flashcards

1
Q

business

A

a business is an entity which tries to combine human, physical, and financial resources into processing goods & services to respond and satisfy customer needs

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2
Q

the role of human resource

A

responsible for managing the personnel of the organization

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3
Q

the role of finance and accountants

A

manages organization’s money

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4
Q

the role of marketing

A

meeting customers needs and ensuring product’s sell

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5
Q

the role of operations

A

manages resources dedicated to production and delivery of products

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6
Q

primary sector

A

raw materials

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7
Q

secondary sector

A

manufactures goods

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8
Q

tertiary sector

A

services

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9
Q

quaternary sector

A

provides info

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10
Q

entrepreneur

A

someone who takes financial risk of starting and managing a new business venture

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11
Q

intrapreneur

A

someone who turns ideas into profitable products and services as an employee of a company

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12
Q

reasons for starting up a business or an enterprise

A
  • pursuing a passion
  • opportunity
  • a good idea
  • income potential
  • new lifestyle
  • autonomy/ own boss
  • challenge
  • creativity
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13
Q

what is a business plan

A

a written document that describes a business, its objectives and strategies, the market, and its financial forecasts

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14
Q

the distinction between the private and the public sector

A

a private sector is a business owned and controlled by individuals or groups of individuals

a public sector is an organization accountable to and controlled by central or local government

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15
Q

sole traders

A
  • easy to set up
  • owner has full control and keeps the profit
  • flexible
  • unlimited liability
  • limited access to finance
  • no benefit of economies of scale
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16
Q

partnership

A
  • partners bring different expertise to the organization and share in decision-making
  • flexible
  • additional finance
  • unlimited liability
  • profit is shared
  • conflict between partners
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17
Q

companies/corporations

A
  • limited liability: the shareholder’s potential loss is the amount invested in the company
  • legal personality: company is legally recognized as having an identity separate from that of its owner
  • continuity: death of an owner does not end the company
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18
Q

cooperative

A

an organization jointly owned by a group of people (members) who democratically run the organization to meet the needs and aspirations of its members

  • motivation because of democratic decision making
  • income goes to members
  • income can be reinvested to the enterprise
  • slow decision making
  • managers do not have full control
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19
Q

microfinance

A

provides financial services to poor or low-income customers who do not have access to normal banking services

  • helps people get out of poverty
  • improve healthcare, education, and employment
  • unethical since you earn profit from low-income individuals
  • unlikely to make a big difference in society
  • struggle to attract or retain employees and managers
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20
Q

public-private partnerships (PPP)

A

public sector organization has a contract with a private sector business to support the provision of a public service

  • aim to make a profit, therefore, operate services as efficiently as possible
  • schools, roads, and prisons have been funded by PPP schemes
  • the private sector is profit-oriented
  • lack of experience needed to operate
  • large profit comes from rent charges that comes from taxpayers pockets
21
Q

non-governmental organizations (NGO’s)

A

include non-governmental organizations and charities (they don’t aim to make profits)

22
Q

charities

A

not-for-profit organizations set up to provide money and support for people in need

23
Q

vision statement

A

an inspiring statement that provides all stakeholders with information about the business’s purpose, values, and what it wants to achieve in the future (long-term)

24
Q

mission statement

A

organizations formally set out and publicize their core objectives. a mission statement declares an organization’s purpose, or why it exists (present)

25
Q

aims

A

long-term goals that a business wants to achieve in the future

26
Q

objectives

A

are targets set by an organization to achieve its corporate aim

27
Q

strategy

A

is the long-term plan that sets out the ways a business is going to achieve its corporate aims

28
Q

tactics

A

are the specific techniques used by a business to achieve its objectives

29
Q

Ethical objectives

A

are business objectives influenced by moral values. these values often come from different stakeholders un the organization and reflect their ethical position on moral issues

30
Q

CSR (corporate social responsibility)

A

is where the organization considers the interests of society by taking responsibility for the effects their decisions and activities have on customers, employees, communities and the environment

31
Q

SWOT analysis

A

is a planning tool used by organizations as a method for guiding business strategy by considering the strengths, weaknesses, opportunities, and threats the business faces

32
Q

Ansoff matrix

A

a tool used by the management to develop a marketing plan by considering growth strategies related to the products the business sells and the market it operates in

  1. market penetration
  2. product development
  3. market development
  4. diversification
33
Q

stakeholder

A

person, group or organization that can affect or be affected by an organizations actions, objectives and policies

34
Q

stakeholder concept

A

the view that businesses and their managers have responsibilites to a wide range of groups not just shareholders is known as the stakeholder concept (traditional view of business)

35
Q

internal stakeholders and their interests

A
  • employees (pay, conditions, job security)
  • shareholders (profit, vision, liquidity)
  • managers (financial performance, profits, sale targets)
36
Q

external stakeholders and their interests

A
  • suppliers (speed of payment, level and regularity of orders, fairness of treatment)
  • customers (service quality, ethical)
  • government (taxation, obeying laws)
  • banks and other creditors (liquidity)
  • pressure groups (change a business’s policy towards pollution)
37
Q

STEEPLE analysis

A

strategic planning tool used by businesses to focus on the opportunities and threats of the external environment

Social, Technological, Environemntal, Economic, Political, Legal, Ethical

38
Q

economies of scale

A

decrease in average cost of production due to expansion

39
Q

diseconomies of scale

A

an increase in average cost of production due to expansion

40
Q

cost benefits that arise

A 
Purchasing economies 
Technical economies 
Financial economies
Marketing economies
Managerial economies
41
Q

difference between large and small organizations

A
  • larger organizations have more financial muscle and can withstand changes in the extrenal environment
  • increased profitability
42
Q

mergers and acquisitions

A

an agreement by shareholders and managers of 2 businesses to bring both firms together under a common board of directors

43
Q

takeover

A

when another company buys over 50% of shares of another company and becomes a controlling owner

44
Q

join venture

A

2 or more businesses agree to work together on a particular project and create a seperate busness division to do so

  • costs and risks are shared
  • diff companies have diff strengths and weaknesses
  • major markets in diff countries
  • styles and cultures may be different
  • failure of one partner puts project at risk
45
Q

strategic alliance

A

an agreement between firms in which agrees to commit resources to achieve an agreed set of objects

46
Q

franchising

A

a franchise is a type of license that a party requires to allow them to have access to a business’s trademarks to sell products or provide service under the business’s name

47
Q

globalization

A

growing integration and interdependence of the world’s economies causing consumers around the world to have increasingly similar habits and tastes

  • closer to main markets
  • lowers cost of production
  • increased sales and profits
  • communication barriers
  • language, legal, cultural differences
  • skill level
48
Q

internal growth

A

expansion from within a business by expanding the range of products and/or locations and/or factories

49
Q

external growth

A

business expansion achieved by means of merging with or taking over another business from either the same or different industry

Business (6 decks)

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