Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business (Tina) > Unit 9 (5.4, 1.6, 2.2) > Flashcards

Unit 9 (5.4, 1.6, 2.2) Flashcards

1
Q

Location

A

Geographical place where the business is actually located

  • Hairdressers located in the town centre high street
  • Supermarket located om the edge of town in a retail park
  • Car factory located outside of town
  • Online business run out of a garage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Quantitative factors that determine where the business is located

A

Cost of rent/morgage

  • High street versus out of town

Labor costs

  • Different parts of the country
  • Or a different country

Government policies

  • Subsidies/grants for locating in a certain area

Distance to the market/inputs

  • Near the market (customer footfall)

High street vs out of town

  • Factory’s costs of transporting product to retailers

Distance to inputs

  • E.g. oil refinery, strele manufacturer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Qualitative factors that determine where the business is located

A

Near to potential employees

  • Tech company in Silicon Valley

Infrastructure

  • Access to transport
  • Telecommunication - e.g. internet

Political and legal factors

  • E.g. maximum working horus
  • E.g. environmental laws

Where is the competition?

Room for expand premises

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Offshoring

A

Transferring part of the business to another country

  • E.g. transferring production to China
  • E.g. transferring call center to India
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Pros of Offshoring

A
  • Potentially access cheaper labor costs
  • Avoid import tariffs
  • Access to specialized labor
  • Timezone benefits
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Cons of Offshoring

A
  • Lose some control
  • Culture/language barriers
  • Possibility of negative publicity
  • Possibility of lower quality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Reshoring/Inshoring

A

Transferring part of the business back to the original country, having previously offshored it

  • E.g. A US business originally transferred production to China and now are bringing it back to the US
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Possible reasons for Inshoring

A

Higher transportation costs (e.g. higher oil prices)

Political reasons - pressure to move jobs home

No longer have the same cost-benefit

  • Labor costs are now higher
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Outsourcing/Subcontracting

A

Transferring part of the business to an external firm rather than doing it within the business

E.g.

  • Manufacturing
  • Payroll
  • Catering and food
  • Security
  • Marketing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Pros of Outsourcing

A
  • Potential cost savings, as the outsourced business should have economies of scale
  • The outsourced business should have expertise, so higher quality
  • Can focus on core activities of the business
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Cons of Outsourcing

A
  • Loss of control and need to monitor the quality
  • Negative publicity (redundancy) from the loss of jobs within the business
  • The outsourced business might not know your business well
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Insourcing

A

Transferring part of the business that was previously outsourced to an external firm back to the business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Possible reasons for Insourcing

A
  • No longer cost-efficient
  • Worries over quality
  • Want more control over production
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Organizational Structure

A

The system of relationships between individuals in an organization, which determines:

  • Communication
  • Work
  • Responsibility
  • Decision-making
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Levels of Hierarchy

A

The number of levels within an organization.

Employees at the same level having the same authority responsibilities.

  • Tall - Many Levels
  • Flat - Few Levels
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Span of control

A

The number of employees that a manager directly oversees

  • Tall - Low span of control
  • Flat - High span of control
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Chain of command

A

The route that information and responsibilities move up and down the structure

  • Tall - Long chain of command
  • Flat - Short chain of command
18
Q

Tall/Vertical

A
  • Each team is smaller so easier to control
  • Better team morale as smaller teams
  • More opportunities for promotion
  • Clear hierarchy and structure
19
Q

Flat/Horizontal

A
  • Less managers required = less costs
  • Quicker communication and decision-making
  • More delegation and responsibility
  • High trust environment
  • Empowered - closer to the top
20
Q

Delegation

A

Giving authority and responsibility of a task to another employee, usually to someone in a lower level of hierarchy

21
Q

Bureaucracy

A

An administrative system which defines how things are run in the organization

  • Paperwork
  • Rules and employee handbooks
22
Q

Organizational Chart - By Function

A
  • Organized by their functions (Marketing, Finance, HR)

Pros:

  • Employees now specialize in one function

Cons:

  • Managers might only consider their function in decision making, not the entire organization
23
Q

Organizational Chart - By Product

A
  • Organization by each product
  • Departments can specialize in one product
  • Marketing team just for iPhones
  • Finance team just for Apple Watch
  • Possible lack of coordination (e.g. research the same thing)
24
Q

Organizational Chart - By Region

A
  • Organized geographically by country, region or continent
  • Easier communication (e.g. similar culture), local knowledge
  • Possible job duplication, lack consistency across areas
25
Q

Delayering

A
  • Taking away a level of hierarchy in the organizational structure
  • Makes the organization flatter
26
Q

Pros of Delayering

A
  • Reduces costs - Two manager salaries
  • Quicker communication
  • More power to lower levels
27
Q

Cons of Delayering

A
  • Fewer opportunities for promotion
  • Employees have more work
  • Same work for fewer employers
  • Higher span of control for CEO
  • Redundancy costs
28
Q

Centralization

A

When a business’s key decisions are made in HQ - or at the center of the business

Determines working hours

  • HQ determines for all departments - e.g. sales and HR departments the same

Marketing Campaigns

  • HQ in Germany determines the rest of the world
29
Q

Cons of Centralization

A
  • Employee demotivation - little decision-making power
  • Pressure of decision-making at the HQ
  • Lack of flexibility
29
Q

Pros of Centralization

A
  • Quick and easier decision-making
  • More control and standardization of the brand
30
Q

Decentralization

A

When a business key decision are passed down to middle and junior managers within the business or other countries

  • Passing down decisions making
31
Q

Pros of Decentralization

A
  • Decisions more tailored to the local culture
  • Empower other parts of the business - improved morale and teamwork
31
Q

Cons of Decentralization

A
  • Lack of consistency across the business
  • Decisions may not be made with the whole business in mind
32
Q

Matrix Structure (HL)

A
  • Project-based
  • Structure that creates temporary teams for a specific subject

E.g. Project 1 requires a: Business Analyst, Developer, Tester

33
Q

Handy’s Shamrock Organization (HL)

A

Core staff

  • Full time, permanent workers
  • E.g. teachers

Temporary Workforce

  • Part-time, paid per hour
  • E.g. substitute teachers

Outsourcing (subcontractors)

  • A business hired other business to perform
    specific tasks
  • E.g. school cleaning
34
Q

Multinational Company

A

Operates in many countries, with the HQ located in home country and other operations in another country

35
Q

Host Country

A

The country that the business is moving into

36
Q

Positive Impacts on the Host country

A

Creates more jobs in the host country

Training opportunities for these local employees

MNCs might buy other inputs locally

  • E.g. electricity, glass

Boosts the economy

More production (GDP), taxes paid for the
government (corporation tax)

Increased consumer choice

Enhanced competition for local businesses

An incentive to improve in efficiency for local businesses

37
Q

Negative Impacts on the Host Country

A

Potential bankruptcy of local businesses who can’t compete (sunrise/sunset industry)

Depletion of non-renewable resources in the host
country

Potential of negative impact on environment

  • Emporting pollution

Erosion of local culture

38
Q

Factors determining whether the impact will be positive or negative

A
  • Respect given to the local culture
  • Whether corporation tax is paid in the country
  • Whether they hire local employees or bring employees from the HQ
  • Labor conditions they use
  • Can local businesses survive and thrive?

Business (Tina) (22 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions