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A2 business > Unit 3 > Flashcards

Unit 3 Flashcards

1
Q

What is a mission statement ?

A

Brief written statement of the purpose of a company or organisation

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2
Q

What does a mission statement do ?

A

Overall goal
Clear direction
Guides decision

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3
Q

What are the advantages of a mission statement?

A 
Focus
Motivates
Attracts people/resources 
Public relation
Clarifies purpose
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4
Q

What are the disadvantages of mission statement?

A

Vague
PR exercise
Needs to be supported by management
States obvious

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5
Q

What is a stakeholder?

A

Someone who is affected by a business decision

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6
Q

Name examples of a stakeholder

A 
Shareholders
Community
Employees
Owners
Managers
Customers
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7
Q

What is culture?

A

Shared business values and day to day behaviour

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8
Q

Examples of culture

A

How guests are looked after
Recruitment process
Delegation
How long staff in the company

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9
Q

Signs of a strong culture

A

Staff understand culture
Little or no policies
Consistent
Culture embedded

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10
Q

Signs of a weak culture

A

Inconsistent
Little alignment with values
Extensive bureaucracy and procedures

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11
Q

Importance of culture

A 
Decision making
Organisation
Motivation
Management control
Recruitment 
How customers are treated
Actions towards external stakeholders
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12
Q

What is a power culture?

A

Control comes within
Autocratic
Swift decisions
Smaller organisation

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13
Q

What is a role culture?

A

Bureaucratic
Delegated authorities
Power from position
Highly defined structure

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14
Q

What is a task culture?

A

Lasses fire
Teams to solve problems
Power by ability
Matrix organisation

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15
Q

What is a person culture

A

Individual power
Own boss
Eg doctor

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16
Q

What is the decision making process?

A 
Identify objective
Collect info
Analyse
Decide what action
Communicate 
Outcome
Evaluate
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17
Q

What is a strategic decisions?

A

Bigger plans for future. The bigger picture

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18
Q

What is an operational decision?

A

Everyday low risk decisions

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19
Q

What is a tactical decision ?

A

How your strategic decision will be carried out and achieved

20
Q

What are the internal restraints ?

A

Company policies
People’s behaviour
Availability finance

21
Q

What are external restraints ?

A

Economy
Legalisation government
Competitors
Lack of technology

22
Q

What is SWOT?

A

Strength
Weaknesses
Opportunity
Threats

23
Q

What is the purpose SWOT?

A

Define goals
Capability
Overcome weaknesses
Threats turn into opportunity

24
Q

What are the advantages of SWOT?

A 
Easy to understand
Identifies weaknesses
Helps set aims
Understand business
Identify potential threats
25
Q

What are the disadvantages of SWOT?

A 
Doesn't provide solution
Doesn't prioritise
Doesn't account for changes in external factors
Too much info given 
Can generate too many ideas
26
Q

What are the 5 forces of porters 5 forces?

A 
Competitive rivalry
Threat of substitute 
Threat of new entry
Buyer power
Consumer power
27
Q

What does porters 5 forces do ?

A

Overview of an industry
Competitive advantage
Who has the power or control
Profitability

28
Q

What is organic growth

A

Increasing turnover of its business

Growth internally

29
Q

Why businesses grow ?

A

Increased sales
Higher employment
Increased economies of scale
Achievement

30
Q

How they grow?

A

New shops
Bigger range
Increase output
More staff increases productivity

31
Q

What is external growth ?

A

Growing through acquiring other business such as takeovers and mergers

32
Q

What is a de-merger?

A

Company splitting apart

33
Q

What is management buyout?

A

Managers buy out directors

34
Q

What is a friendly takeover

A

Company takeover where the company agrees and is happy

35
Q

What is a hostile takeover

A

Taken over where company is unhappy . By owning majority of shares.
Not consented

36
Q

Why change happens?

A 
New technology
Competition
Change in consumer taste
Change in the law
Labour market
Economic conditions
37
Q

The effects of change

A

Shorter product life cycle
Skill mismatch
Lower brand loyalty

38
Q

The response to change

A 
Seek commitment 
Research and development 
Expenditure
HRM expenditure 
Capital investment
39
Q

What is the problem of change

A

Resistance
Financial problem
Lack of expertise

40
Q

What factors can minimise risk?

A 
Planning
Communication
Location
Insurance
Backup for power and data
Security
Emergency funds
41
Q

The 4 areas of risks with change

A

Size
Speed
Culture
Managing resistance

42
Q

What is the problem with the size of a business with risk

A

Bigger the business less flexible and less adaptable

43
Q

What does spiced stand for

A 
Strong
Pound
Imports
Cheap
Export
Dear
44
Q

What happens to imports is there is a fall in the exchange rate

A

Bad
Reduced profit margin
Increase prices to cover costs

45
Q

What happens to exports if the exchange price falls

A

Good
Cheaper
More units sold
More revenue =more profit

A2 business (1 decks)

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