Business Management Flashcards
(25 cards)
features of effective management
Interpersonal: Interacting and working with people inside and outside of the business.
Informational: Gathering and disseminating information about what is happening inside and outside of the business.
Decisional: Solving problems and making choices as to the ‘best’ or the most appropriate course of action of the business.
Skills of management
Interpersonal skills Dispute Resolution Strategic thinking Vision Flexibility and Adaptability to change Complex problem solving and decision making Communication skills
smart goals
Specific Measurable Achievable Realistic Time bound
Business goals
Ms GEPSS Profit Maximisation Increasing Market Share Growth Share price Maximisation Social/Ethical Goals Environmental Goals
achieving the goals;
financial
non-financial
personal
- Financial goals i.e. increasing sales, increasing market share, maximising growth, improving share price
- Non-financial goals i.e. social and environmental goals. ‘Give back to the community’. Has the effect of not only fulfilling a business’s responsibility of social justice but also enhancing their reputation within the community.
- personal; May include self-satisfaction, reaching a particular level of business, following a career path etc.
staff involvemement in achieving goals
Innovation
- The innovative activities of staff are often referred to as the entrepreneurship within the business.
- However, if a business is to grow and to maintain its competitive advantage, then staff must be encouraged and given the opportunity to be innovative.
staff involvemement in achieving goals
mentoring
- Mentoring is normally done by tutoring, coaching and modelling of acceptable behaviour. Most importantly, though, a mentor acts as a role model.
staff involvement in achieving goals
motivation
- Refers to the individual, internal process that directs, energises and sustains a person’s behaviour.
- Motivation is what drives a person to behave a certain way or to achieve a certain goal
- Motivation examples could be business, rewards, deadlines, effective communication, employee
interest by managers or even punishments
staff involvement in achieving goals
training
- Employee training generally refers to the process of teaching staff how to perform their job more efficiently and effectively by boosting their knowledge and skills.
- teaching them specific skills, allows existing employees to continually upgrade their skills with the aim of developing multi-skilled employees.
- The goal is to improve employee productivity. Informal and formal job training exists.
Scientific Management Approach
Top down power and authority Long chain of command Narrow span of control autocratic planning, organising and controlling
Behavioural Theories
leading, motivating and communicating
democratic
teamwork/sharing of roles = centre
contingency approach
adapting to changing circumstances
combination of scientific and behavioural theory
Understanding that there is not one best way to manage a business
Designing jobs to fit the circumstances of the worker and business environment
Managers extract the most useful ideas and practices to suit their business’ present requirements
operations - Goods and services
- Operations management is about producing goods and/or services based on business goals
- Operations management function has considerable influence on the quality, cost and availability of ab business’s goods and/or services.
- Operations management is responsible for transforming inputs into outputs.
operations - production process
inputs, processes/transformation, outputs
operations - quality management
quality control - checking of at various points in production process
quality assurance - Use of a system where a business achieves set standards in production
TQM - Ongoing, business-wide commitment to excellence that is applied to every aspect of the business’ operation. Approaches may include: employee empowerment, continuous improvement and improved customer focus
Marketing - objectives
primary objectives of marketing are increased sales revenue AND market share.
marketing - approaches
niche - business targets a small specialised segment of the market and tailor their products
or
mass - business targets the whole market where all customers are believed to have the same needs and characteristics
marketing - target market
group of customers the business is aiming to reach, inform, persuade and satisfy with their marketing mix
In order to select a target market, the total market can be divided or segmented by common characteristics such as:
Demographic features; geographical location
Use of the product
Social status.
marketing - The Marketing Mix 7 P’s
PRODUCT PRICE PROMOTION PLACE PEOPLE, PROCESS AND PHYSICAL EVIDENCE
marketing - positioning
Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors. This is constantly developed by: Premium/high-end Cutting-edge Affordable/Accessible Specialist
marketing - product strategies
Techniques by which a business emphasises the tangible and intangible benefits through the product itself.
Branding - logos, colour schemes,
Packaging - to attract, inform and persuade customers. appeal to the target market, build on brand and reinforce the positioning of the product/business.
marketing - long term pricing
Cost based
market bases
competition
value-based
Cost-based pricing: setting prices in relation to how much it costs to make the product. A profit margin (% above the cost) will then be decided upon and added. (Ikea)
Market-based pricing: setting prices using the market forces of supply and demand. In times of low supply/high demand; price = high. high supply/low demand; price = lower. (groceries)
Competition-based pricing: Using the price of competitors prices as a guide i.e. Set them the same, above or below competitors. (Woolworths, Officeworks etc)
Value-based pricing: Setting a price based on customer perception rather than costs. This perception may come from the level of service, environmental and social credentials or status. (Cars)
marketing - short term tactics
penetration
market skimming
loss leaders
price points
Penetration pricing: start with a very low price which is raised over time. usually used to enter into the market or to increase market share. (Spotify subscription)
Market skimming: start with a high initial price which is then reduced over time. It is usually used when there is no competition in the market and to reinforce the exclusivity/quality of a product. (Apple products)
Loss leaders: selling a product(s) at a loss in order to attract people into the shop in hope they will buy other products. (Supermarkets, fast food)
Price points: selling a range of products at fixed price levels (entry level, intermediate and high-end) to appeal to multiple target markets.
Marketing - discounts
Cash
Bulk
End of season/financial year
