1. Section A Flashcards
What is a tall organisation?
Tall organisation
There are MANY LEVELS in the HIERARCHY
When is a PROFIT made?
A Profit is made when:
TOTAL COSTS are LOWER than REVENUE (SALES OR TURNOVER)
SALES = REVENUE = AMOUNT OF GOODS SOLD = TURNOVER
The same thing
SALES = REVENUE = AMOUNT OF GOODS SOLD = TURNOVER
If a company DECREASES its SPAN OF CONTROL
By DECREASING its span of control there would be a SMALLER NUMBER of PEOPLE for whom a manager is RESPONSIBLE
The process of job analysis is:
JOB ANALYSIS is:
- COLLECTING & INTERPRETING INFORMATION about a particular job
- so people who have the correct SKILLS and KNOWLEDGE can be INTERVIEWED
OFF THE JOB TRAINING does what?
OFF THE JOB TRAINING does what?
- It brings NEW IDEAS into the business
What happens if a business produces poor quality goods?
Poor quality goods mean?
- returns - bad reviews - lack of new orders
- wasted resources if a product has to be scrapped
IDENTIFY & EXPLAIN a business objective?
IDENTIFY & EXPLAIN a business objective?
- eg INCREASE MARKET SHARE from 1% to 5% within 2 year
- so everyone in the business is working towards the same goal
What can happen to a BUSINESS if UNEMPLOYMENT in the UK goes up?
If UNEMPLOYMENT in the UK goes up so lots of people don’t have a job:
- people will not be working - they won’t have as MUCH MONEY TO SPEND - so they WONT’ BE ABLE TO BUY GOODS OR SERVICES. This will effect what the company can sell so its PROFITS will go down.
DISADVANTAGES of Flow Production?
Flow Production is when a LARGE number of goods are produced using STAGES on a PRODUCTION line
(one person does their task then is goes onto the next person)
DISADVANTAGES:
- work is REPETITIVE, BORING, UNMOTIVATING - workers might be DISSATISFIED and produce BAD WORK - might lead to the whole product being SCRAPPED - wasting resources & costing the business £
- is people are bored - they may be absent this would need to problems with the flow of goods on the production line
HEALTH & SAFETY LAWS can affect a company by:
HEALTH & SAFETY LAWS can affect a company by:
- they need to provide TRAINING for their workforce - it COSTS £ and will effects PROFITS
- might need to provide PROTECTIVE CLOTHING - eg PPE - it COSTS £ and will effects PROFITS
What are the benefits of an EFFECTIVE RECRUITMENT & SELECTION process?
An effective RECRUITMENT RECRUITMENT & SELECTION process means:
- the RIGHT person will be chosen for the JOB - who should STAY & so the business will not need to RE-ADVERTISE - this costs £ and effects PROFITS
- the RIGHT person should be happy & MOTIVATED in the job leading to HIGH QUALITY OF OUTPUT (eg well made boots with no faults)
- the RIGHT person will provide good CUSTOMER SERVICE - (eg school receptionist should have good people skills and not be grumpy or unapproachable)
What is SUSTAINABILITY in business?
SUSTAINABILITY in business is:
- using METHODS of production that can be continued in the LONG TERM and does NOT CAUSE DAMAGE to the ENVIRONMENT
- eg NOT USING HARMFUL CHEMICALS
- eg using RENEWABLE MATERIALS
- eg using RENEWABLE ENERGY SOURCES
- eg LIMITING POLLUTION
Why become an entrepreneur?
Become an entrepreneur?
- to pursue your interest
- because you are unhappy in your current job
- because you have seen a gap in the market
What is a need and what is a want?
A need is a basic human requirement eg food but a want is a luxury eg a holiday (you can manage with out the holiday but you need to eat)
