workshop questions Flashcards
Chapter 1 of Needle and Burns (2019) explains the broad concept of the Business in Context. This
concept involves the environmental, and the organizational and strategic contexts. Explain each of
these concepts in more detail and consider how these different elements shape business activities
and operations.
environmental context - all aspects of the environment of the organisation within the context of globalisation
the economy - includes the level of activity in the overall economy, economic structure changes, international finance and currency, level of competition, nature of labour markets, existence of multinational firms
the state - political ideology and scope for political change, govs economic policy, level of gov intervention and legislation
technology - product and process technology, scale and nature of tech change, use of info technology, use of social media, e-commerce, impact on organisational structure and labour market
organisational context - internal context of the organisation
organisation goals - includes type of goals set, differ depending on the organisation what it is intending to achieve
ownership and control - includes separation and control of organisation, public vs private
organisation structures - influences and link between strategy and organisation
business activities context - firms activities in terms of level of innovation undertaken and organisation efficiency
level of innovation, efficiency of operations, marketing, human resource management and finance and accounting
What is the function of management in an organisation? What attributes or characteristics would
you associate with a successful leader?
management - refers to people who manage an organisation, may be differing levels of management in the organisation hierarchy
general manager - head a complete unit and are responsible for unit performance
functional managers - responsible for a particular area of work
staff managers - responsible for activities eg financing
project managers - responsible for temporary team for project
management is responsible for a particular activity and try to achieve an outcome
democratic - takes views of others into account when making decisions
good at allocating resources - able to identify where additional resources are required
goods at identifying problems - identify a problem and find a solution before problem arises
good interpersonal skills - able to resolve conflict between colleagues, able to relate with employees lower down hierarchy
Explain the importance of team working in an organisation. What characteristics would be associated
with a successful team in an organisation?
a team is a group of people who are working together to achieve set objectives, may have a constant or rotating leader
aims to achieve a set goal, can be more motivational
formal team - vertical or horizontal
informal team - develop as people work together
development stages - forming, storming, norming, performing and adjourning
bring together individuals for a common purpose, useful for organisations
problems eg free-riding and additional time to coordinate activities
different team members have different roles
diversity in team members background
good leader/co-ordinator
everyones individual needs are satisified
not too large in size
socialise and work well together
Many writers comment that good product branding is the key to business success. Discuss whether
this assertion is true, and also what factors are essential to successful branding.
brand - name, sign or symbol, represent product or organisation
allows for product differentiation, prominence in market place, repeat business/customer loyalty, used to extend product range
companies develop branding over prolonged periods of time, to get repeat business it is important that customers recognise the product through ads
successful marketing to support development of brand image, 4 P’s - product, place, price and promotion
What is meant by the term ‘product life-cycle’? Why is the concept important to those planning
marketing strategy of a company?
stages in product life-cycle: development, introduction, growth, maturity, decline
length of cycle will vary between products and its useful to have a portfolio of products, some have lifecycles of months or years
marketing strategy - long term, forward looking approach to planning, goal to achieve competitive advantage
involves the 4 P’s
introduction level - low sales, high or low price strategy for good, large expenditure on ads
growth phase - rapid increase in sales volumes, price is maintained if demand is high or reduced to increase demand, increased ads for repeat business
maturity phase - steady sales, most profitable phase of cycle, may try to change product to differentiate from competitors, prices may be reduced to increase sales, ads reinforce branding
decline - sales decline, reduced ads, transfer branding to other products
Explain Porter’s Five Forces and identify the relative influence of Porter’s Five Forces on an organisation
of your choice.
- threat of potential entrants - new business may enter industry and steal market share from existing firms
- threat of substitution - alternative product offers price/performance advantage
- bargaining power of buyers - buyers can choose a substitute product when there is little cost involved for the buyer in switching
- bargaining power of suppliers - greater when there are fewer suppliers available
- competitive rivalry - competitive force that relates to rivalry between existing firms in the industry
Cadbury
1. firm benefits from economies of scale, difficult for new entrant, distribution relationships in large scale supermarkets and garage chains, patented designs and trademarks
2.highly competitive market, many substitute products available, buyers willingness to switch
3. price sensitivity of buyers, some price conscious customers may only buy when on offer, large chains have greater buying power than individuals so may only buy for certain prices etc
4. few substitutes for raw materials, suppliers may have little power over market price against large companies like cadbury
5. lots of large firms in the industry, growth is static in existing brands so creating new products is key, differentiation of products through packaging and marketing, new entrants would find it difficult to break in
Who are the main competitors for Lancaster University? On what basis does Lancaster University
have a competitive advantage over its competitors? Explain whether you think the competitive
advantage of Lancaster University is sustainable and why
main competitors - other unis eg exeter, leeds, york etc, info in league tables to compare performance
competitive advantage - campus uni, college system, reputation, exchange programmes, accommodation etc
sustainable advantage - whether other rival unis could take the competitive position, currently strong in league tables, investment in facilities is on-going, development of faculties, development of brand
How can technology help a firm gain a competitive advantage? Provide examples to illustrate your
answer.
competitive advantage - attribute that allows an organisation to outperform competitors, eg access to natural resources, high skilled labour etc
technology - the application of available knowledge and skills used to create and use materials, processes and products, often accorded a dominant role in business and determines products and processes
tech helps competitive advantage - widening scope of business, reducing costs, creating new products and processes, increasing speed of operations, improving customer service, creating new markets
Identify the various type of change that are likely to occur from the introduction of business systems
around Information and Communications Technology (ICT). What opportunities and threats exist for
the management and the workforce? What problems will be created and how may they be
overcome?
ICT - stresses role of unified communications and integration of telecommunications and computers
changes due to ICT - accessibility to info on a global basis, increase in volume of speed and info flow between individuals, development of new products/services, removal of geographical constraints
opportunities - managers: improved quality of product, cost reduction, increased competitiveness, improved management over production and employees, employees: new job opportunities, greater job satisfaction, opportunity to learn new skills
threats - managers: increased competition, job losses, problems with change, high costs, employees: job losses, increased managerial control
problems and resolutions - reduce discretion individuals have, de-skills workforce and greater management control, training in use of new technology, re-training employees for their new roles, employee consultation about ICT and impact on jobs
What is meant by the term ‘corporate culture’? Provide examples of companies that have a strong
corporate culture.
corporate culture - shared values and beliefs in an organisation, shared goals and vision they should pursue, may be a mission statement, may be sub-cultures in organisation and may be difficult to change
strong corporate culture - PwC
Explain how the cultural aspects influence businesses. Provide examples to illustrate your answer.
culture - influences the way people interact, the context within which knowledge is created, resistance towards certain changes
corporate culture - shared values and beliefs of people in the organisation, shared goals and vision which the organisation should pursue
how does it effect business - based on background, experience etc, company culture may effect methods of working and decision making, external/national culture may be brought into company, methods of management and evaluation may affect culture
Explain the different types of business entity (i.e. sole traders, partnerships and limited liability
companies). Discuss the benefits and disadvantages of each type of business entity in terms of the
distribution of profits and control.
sole trader - individual in business on own
pros/cons - risks and rewards are on owners head, full control and decision making power
partnership - two or more people run business
pros/cons - can have limited/unlimited liability, shared control and decision making power
limited liability company - shareholders appoint directors to run business
pros/cons - only liable for money invested in company, benefit from dividends and capital gains, directors/managers run business and are separate from owners, ordinary shareholders have voting rights and receive share of profits
Describe the following different types of organisational structure: Functional, Divisional, Project
Teams and Matrix structures. Can you give examples of why particular types of businesses might
prefer particular types of structure to others?
functional structure - teams of people with similar skills work together, layers of management and authority to organise what is happening
pros/cons - takes advantage of specialisation and has a clear chain of command, may result in conflicting objectives and lack of focus on consumer
multi-divisional structure - separate divisions based on different products, can be like separate businesses as they may be responsible for their own decisions
pros/cons - encourages entrepreneurship and reduces dependence on managers, problems of coordination across firm and management control may be affected by differing incentives
project teams - teams created for particular tasks, useful in fast changing environment
pros/cons - diverse issues are dealt with effectively and you can deal with clients individual issue, may lead to duplication of effort and waste of resources
matrix structure - vertical and lateral lines of authority, staff usually have more than one manager, workers may work in teams but report to different managers
pros/cons - expertise in places where it is needed, problems with coordination and control, individual employees have many bosses with conflicting loyalties
organisations have different numbers of management levels, appropriate for different business types eg schools may use matrix, structure may change overtime to adapt to economic needs
Argue the case for and against the premise that an organisation should be responsible to a wide
range of stakeholders rather than solely the company shareholders. Provide some examples of
stakeholders who seek to influence organisations.
stakeholders - party affected by actions of an organisation, includes customers, lenders, govs, community, shareholders, employees etc
pros/cons - companies should be accountable for various stakeholders, may be business benefits of being conscious of stakeholders, many large companies produce stakeholder reports, shareholders argue company aim is to provide returns
influenced by - trade unions who demand higher wages, local communities bringing pressure on companies, pressure groups like greenpeace for environment
What do you understand by the term “Business Ethics”? Why is business ethics important? What
issues may arise in business ethics as a result of globalization? Provide examples to illustrate your
answer.
business ethics - a form of applied or professional ethics that examine ethical principles or moral problems that can arise in a business environment
importance - attract higher profit, avoid bad publicity, avoid fines, attract other ethical firms as sellers and buyers, attract customers, investors and employees, act as a source of competitive advantage
issues - different cultures/societies have different values, working conditions viewed differently in different places, absence of absolute values makes decision making more complex for global firms, organisations have developed global standards for trade and employment, growth of organisations like fair trade that ensures goods are produced ethically
