Business Operations Flashcards
Act
An Act is a bill which has passed through the steps required for it and has become law
Capital
Money/assets you use to start a business
Fixed assets
Assets purchased for long term use
Liaise
To assist communication between groups
Overdraft
An extension of credit for when you take out more money than you have
Pre requisite
Something that is required as a prior condition for something else to happen/ exist
Requisition
A purchase request for someone in the purchasing function
The PURPOSE of the eight business functions
• work together to achieve one goal.
• carry out closely linked tasks to achieve the same goal.
• Roles and tasks change depending on the stage of growth of the business.
• ensure survival of the business.
What type of plans does top management form
Strategic plans
Middle management forms ? Plans
Tactical
Lower management forms ? Plans
Operational
Describe management tasks
• Planning with the objectives of the company in mind.
• setting goals and developing strategies.
• getting all info for planning.
• Analyse info and set long term goals.
• Considering different plans to achieve the goals.
• Choosing the best plan and decide on the action to be taken.
• Implementing the chosen plan.
• Follow up to make sure the plan is successful, adjust it or change to the backup plan
GENERAL MANAGEMENT FUNCTION
• Sets the overall direction or strategy for the business.
• This function leads, organises and controls all the other functions.
• There are also decisions taken in each level.
• Management has three different levels, each with its own roles and responsibilities.
• Ensures that there is co-ordination among the seven different functions of the business.
ORGANISING
• It is the mechanism used to execute the plan.
• Ensures successful execution of the plan by using relevant
organisational structure.
• It looks at what needs to be done and organizing resources need to
achieve goals and objectives.
• Organising the jobs within specific functions or depart
LEADING
• guide, motivate and inspire
• inspiring employees to carry out their tasks to the best of their abilities.
• est. a productive working climate.
• Motivating employees to achieve the goals set.
CONTROLLING
• Ensures that the business achieve its goals.
• Ensures that standards are met.
• Ensures activities are carried out as planned.
• Enables the business to take corrective measures if the objectives are
not achieved.
• Risk can be identified during control.
• Involves comparing actual results with goals set by management
• Corrective measures must be taken if there is a difference between
actual results and the goals the business set out to achieve.
RISK MANAGEMENT
• Identifies possible risk by finding risk-bearing activities (i.e. activities which could go wrong) within the organisation.
• Assists businesses to analyse each possible risk to assess how likely it is that the risk will happen.
• Evaluates the potential impact of risk in terms of financial liability.
• Controls/Monitors the risk by studying reports and trends in the
environment so that measures can be taken to prevent it from
happening.
• Handles the risk by determining what actions to take should the event
happen using available resources and contingency plan and communication with stakeholders.
TOP LEVEL MANAGEMENT
for example: CEOs, Directors, Owner of sole trader, Partners in partnership
- Reports to board of directors
- LONG TERM STRATEGIC DECISIONS.
- directs, controls and manages risks.
- Determines the vision/mission/objectives/strategy of the business.
- Act of getting people together to accomplish certain goals.
- Oversees the activities of the other functions so that the business
can achieve its objectives
MIDDLE LEVEL MANAGEMENT
for example: Departmental managers. e.g. marketing manager. financial manager etc.
- Responsible for specific departments
- MEDIUM TERM TACTICAL DECISIONS.
- achieves goals / objectives set for specific department.
- implements top level management plans
- Implements vision of top management.
- works with managers in other departments and acquires resources needed in their departments.
LOWER LEVEL MANAGEMENT for example: Foreman, Supervisor, Team leaders.
- high level of productivity
technical assistance
motivating employees. - SHORT TERM / TACTICAL DECISIONS.
- Carry out instructions from middle management
- first management level, first promotion
Explain the meaning of a business ORGANISATIONAL STRUCTURE
- a system outlining how certain activities are directed in order to achieve the goals of the organisation.
- It identifies each JOB, its FUNCTION and where it REPORTS to in the organisation.
- Example of an organisational structure
MARKETING MANAGER
FACTORS that influence the organisation structure
• size of company
• technology
• resources
• strategic goals
TYPES of organisational structures
- FUNCTIONAL
• instructions from more than one manager
• The plan to be carried out determines who will give instructions
• confuses employees as they report to more than one manager. - PROJECT
• structured around project teams
•temporary structure because employees drawn from diff departments
• Employees grouped together to form a project team which carries out a
particular project. - MATRIX
• structured around projects but employees stay in their departments.
• project completed up to a certain point
• The project is passed on to the next team, which carries out next phase of the
project.
ADMINISTRATION FUNCTION:
• Handling info / data.
• collects info.
•Imp that this info is stored / distributed.
• Information interpreted, analysed and communicated
• Imp info communicated to necessary managers / employees.
• Admin is responsible for collecting, processing and distributing info
used for decision making by management.
• Stores/Records info using recent technology.
• general office work such e.g filing and storing info
Outline the ACTIVITIES of the administration function.
- COLLECTION OF INFORMATION
• Info collected from outside / inside business
• Correct and reliable information available - HANDLING OF INFORMATION
• handle info correctly to avoid making
wrong decisions
responsible for dealing with:
o ACCOUNTING RECORDS: used to draw up financial statements and reports.
o COST ACCOUNTING: Determines if product can be sold at a competitive price considering manufacturing or production costs
o BUDGETS: estimated expenses and income for specific period STATISTICS: collected and classified numerical data. - (IT)
• use of electronic equipment to help get stuff done
•tech used to communicate and handle information, referred to as ICT
(information and communication technology). - OFFICE PRACTICE
• how the administrative staff should handle their duties
• dress code / proper filing of documents/
telephone etiquette/internet usage
The DIFFERENCES between data and information
Data
Unprocessed facts
Found in tables/graphs/statistics etc
Can be collected from other business functions
Processed manually/w tech
Information
Analyses/processed data
Stored manually
Mostly used memory sticks/CDs to store info
