External influences (SBL) Flashcards
(273 cards)
1
Q
06/09/16
What is a competitive market?
A
A market in which there are a large number of sellers. Competition is mainly based on price
2
Q
06/09/16
What is a mark up?
A
The difference between the cost of producing an item and the price at which it is sold
3
Q
06/09/16
What is a market price?
A
Although there is no such thing as a ‘market price’, in the sense of a single price for a product, there is a price range in a market at which consumers are prepared to pay
4
Q
06/09/16
Why do physical markets continue to exist?
A
The personalisation they offer
5
Q
06/09/16
Why have non physical markets grown rapidly?
A
The convenience they offer
6
Q
06/09/16
Markets can be what?
A
Physical or non physical
7
Q
06/09/16
What is a market?
A
Any situation where buyers and sellers are in contact in order to establish price
8
Q
06/09/16
What is competition?
A
Rivalry amongst sellers
9
Q
02/09/16
How do you work out profit?
A
Revenue - costs
10
Q
02/09/16
How do you work out revenue?
A
Selling price x quantity
11
Q
06/09/16
What is a monopoly?
A
A market dominated by one seller
12
Q
16/09/16
How many firms, what are their prices and give an example of a monopoly shop?
A
1 firm
Sometimes higher prices
Example is tesco as it dominates 29% of the market so it is considered to be in the monopoly
13
Q
16/09/16
How many firms are in a competitive market compared to a monopolistic market?
A
They both have lots
14
Q
16/09/16
What are the prices of competitive market and monopolistic market?
A
Competitive prices are lower and monopolistic markets are where price doesn’t apply
15
Q
16/09/16
Give examples of competitive and monopolistic competition
A
Competitive - morrisons, Aldi, waitrose, lidl, ocado
Monopolistic - taxis
16
Q
16/09/16
What do monopolistic competition offer
A
Non price differences: (Example of a taxi Late pick up times Disabled access Luxury cars Good customer reviews Personal drivers
17
Q
16/09/16
What does economies of scales mean
A
Economies of scales arise when unit cost falls as output rises
18
Q
16/09/16
What is a business considered if it has 25% or over market share
A
Monopoly
19
Q
16/09/16
Why don’t governments allow monopolies
A
The price will be too high. No business is at either end of the spectrum, they’re more in the middle
20
Q
16/09/16
What is an oligopoly and give an example
A
An oligopoly exists where a market is dominated by a few firms. The mobile phone market is an example of an oligopoly
21
Q
16/09/16
How do oligopolies compete
A
The products and prices are similar.
If one store cuts prices, another will too
22
Q
16/09/16
Give monopolistic competition examples
A
Shoe repairs and key makers Taxi and minibus companies Sandwich bars and coffee stores Hairdressing salons Dry cleaners and laundrettes Bars and nightclubs
23
Q
16/09/16
What is a monopolistic competition
A
Where you have a lot of firms using non pricing strategies to bring customers in
24
Q
16/09/16
What is meant by market size
A
The number of individuals in a market who are potential buyers of a product/service
25
16/09/16
What is meant by market growth
This refers to an increase in the demand for a businesses product. It is measured over a specific time and is expressed as a %
26
16/09/16
Why is it important for businesses to know the size of the market they are operating in
So they don't overproduce or overprice their products. If they have a small market, they are more likely to be nearer the monopoly side rather than the competitive side
27
16/09/16
What is meant by market share
This is the share of the total market that is owned by a particular business, product or brand
28
16/09/16
What are 6 strategies to increase market share
Be aware of customer needs and meet them
Sell more to existing customers
Have a clear marketing plan
Merge with a competitor
Find out why old customers no longer use your products
Use a variety of marketing techniques (pricing, advertising and promotion)
29
20/09/16
What does market dominance mean
The measure of strength of a business and its product(s) relative to the competition
30
20/09/16
What does barriers to entry mean
Factors that could prevent a firm from entering and competing in a market
31
20/09/16
What are 5 barriers of entry
Large start up costs (these will mainly be capital costs such as premise and machinery)
Having the marketing budget to break customer loyalties
The inability to gain economies of scales
The possibility that existing businesses will start a price war
Legal restrictions such as patents
32
21/09/16
Which market structures are likely to have high barriers to entry?
Competitive markets because there are a lot of firms and competitive prices
33
21/09/16
What do we mean by barriers to exit
The factors that could prevent a firm from leaving the market, even if they wanted to
34
21/09/16
What are the 3 barriers to exit
Difficulty of selling off capital
High redundancy costs
Contracts with suppliers (company will face legal challenge if these are not honoured)
35
21/09/16
What is a stakeholder
Any person interested in the business or organisation
36
04/10/16
What does CMA stand for
Competition and markets authority
37
04/10/16
What are the main roles for the CMA
Investigate mergers which could restrict competition
Investigate monopolies abusing the market
Bring criminal proceedings against individuals who commit the cartel offence
38
04/10/16
What are the main 2 sanctions the CMA can do
The business involved can be fined to 10% of their global turnover
Individuals can be disqualified from being a company director
39
03/10/16
What is price
The amount customers pay for a product
40
03/10/16
What is cost
The amount spent by a business making the product
41
03/10/16
What is merging
Where two companies join together to form a new larger business
42
03/10/16
What is acquisition
Where control of another company is achieved by buying a majority of its shares
43
03/10/16
What is an acquisition usually known as
Takeover
44
05/10/16
What is demand
The amount of a good/service that customers are willing and able to buy at any given price
45
05/10/16
What is supply
The amount of a good/service that sellers are willing and able to sell at any given price
46
05/10/16
What is meant by the equilibrium
The situation in a market where demand is equal to supply
47
10/10/16
What are the 8 factors that determine demand
```
Price
Income
Wealth
Advertising promotional offers and public relations
Taste and fashion
Demographic changes
Government action
The price of other products (substitutes, complements)
```
48
10/10/16
What happens to the demand curve when price is a factor
There is no new demand curve
| Customers simply move along an existing demand curve
49
10/10/16
What happens to the demand curve when income is a factor
High income - curve shifts to the right
Low income - curve shifts to the left
A new equilibrium is made too
50
10/10/16
What is wealth, give and example and state how will it affect the demand curve
This is the combined value of savings, shares owned and your house
Eg/ house prices increase from £310,000 to £355,000. Negative impact on demand meaning the curve will shift to the left
51
10/10/16
What is advertising, promotional offers and public relations and give and example and state how it will impact demand and the curve
```
TV ads (BOGOF) and sponsorship of sports teams
Eg/ when firms spend a lot of money on this, it has a positive impact and will shift the curve to the right
```
52
10/10/16
What is taste and fashion
Fashionable products like clothing and technology
53
10/10/16
Give an example and state how demand and the curve is impacted in taste and fashion
Eg/ an increase in these being sold and advertised has a positive impact on demand and will shift the curve to the right
54
10/10/16
What is demographic changes, give an example and state how this will affect demand and the curve
This is how the population affects spending
Eg/ decrease in population from 50,000 to 42,000 will have a negative impact on demand and will shift the curve to the left
55
10/10/16
What is government action, give an example and state how it affects demand and the curve
This is campaigning by the government
Eg/ to encourage a healthier lifestyle, the government has a keep fit campaign. The curve will shift to the right as this has had a positive impact of fitness products
56
10/10/16
What is the difference between substitutes and complements
Substitutes - a product that can be used instead of another one because it performs the same sort of function
Complement - products that are in joint demand. When one product is bought so is another
57
10/10/16
Give an example of substitutes and state whether this will negative or positively impact demand and where the curve will shift to
Apples and pears. Price of apples go down, people want apples not pears
Positive influence and shift the curve to the right
58
10/10/16
Give and example of a complement and state the impact and where the curve will shift to
DVDs and DVD players. Price of DVD player falls, increase for DVD players and DVDs
Positive impact and curve will shift to the right
59
14/10/16
What are the factors that determine supply
```
Price
Costs
Taxes
Subsides
Price of other products
```
60
14/10/16
How will supply be affect if price goes up, where will the customers move and give an example
Supply will increase if price goes up
Customers will move up the supply curve
Eg/ price goes from £1-£1.30 supply will go from 1,000 to 1,500 customers will move up the curve with a positive impact
61
14/10/16
Give an example of how supply will be affected with cost decreases
Costs go from £25-£20. Supply decreases and curve moves to the left with a negative impact as it's less profitable to keep selling these
62
14/10/16
How will supply be affected if tax rises on a specific car
Less of that car around. Curve will move to the left and have a negative impact for that specific car
63
14/10/16
What is a subsidy, and give an example
This is a payment from the government for every unit supplied. Eg/ solar panels. £1 per unit and the company sells 1000 units a week this means annual income of £52,000
64
14/10/16.
Give an example of how the price of other products affect supply
Fall in the price of fizzy drinks means it's less profitable to supply them. (Low supply, curve moves left, negative impact)
If the price of fruit juice remains the same its more profitable to supply these instead
65
17/10/16
What is elasticity of demand
Measures how sensitive quantity demanded is to a change in price
66
17/10/16
What is meant by inelastic demand
Quantity is insensitive to a change in price
67
17/10/16
What makes products elastic
Many substitutes
| Luxuries
68
17/10/16
Why is petrol a product of inelastic demand
Necessity (you have to go to work in a car no matter what the price of petrol)
No substitutes
69
17/10/16
What is meant by elastic demand
Quantity is sensitive to a change in price
70
04/11/16
What is globalisation
The process of growth in the worlds markets thorough a process of integration where it's possible to trade in a global market in the same way as one would in a domestic market
(Businesses trading in other countries markets)
71
04/11/16
Why is there so many imports into the U.K.
```
Cost of production is cheaper
Cheap labour
Reduced trade restrictions
Cheaper resources
Better infrastructure
Internet
```
72
04/11/16
Other factors that facilitate globalisation
Technology (smartphones)
Online banking
Increase in the movement of people
Rise of multinationals
73
04/11/16
What is a multinational
A company that is based in one country but manufacturers and sells products in a variety of other countries
74
04/11/16
Why are so many countries keen to be multinationals?
Economies of scales can be obtained
Ability to take advantage of lack of legal constraints
New markets with less competition
Ability to take advantage of lower wages
75
04/11/16
Positives and negatives of being a multinational company to LEDCs
Positives:
Employment opportunities for people in LEDCs
Lessens poverty and develops local skills
Investment in areas (infrastructure)
Utilisation of resources
Negatives:
Unskilled jobs so not much improvement
Low wages
Workers face difficult and unsafe conditions
Use of child labour
Income goes back to domestic market (USA)
People lose jobs in domestic market for people to have jobs in LEDCs
Not every company helps the economy and this could push local businesses out of the market
76
08/11/16
Why are some businesses more affected than others by globalisation
Services based businesses like a hairdressers is less likely to be effected because it's a unique shop, whereas, m and s can get their products through technology to your door within hours
77
08/11/16
What is an emerging market
This refers to developing countries that are achieving rapid growth and industrialisation and are quickly achieving the status of developed markets
78
08/11/16
What do we mean by infrastructure
Road, rail and air links that allow people and output to move speedily around a country to help trade
79
08/11/16
Opportunities to an emerging market and threats to a domestic market
Opportunities: new markets, possibly with high disposable incomes
Opportunity to move production into other markets
Investment opportunities in infrastructure and production
Threats: lower labour costs
Reduced exports as the developing countries being to product for themselves
Greater independence from emerging economies
80
09/11/16
What does the HRM do
```
Workforce planning
Recruitment & selection
Training & development
Rewarding and motivating staff
Communication
Roles and responsibilities (organisational structures)
```
81
09/11/16
What is the Human Resource Management
This is about how people are managed by a business in order to meet the strategic objectives of the business
82
09/11/16
What is an organisational chart
This is a diagram that shows the hierarchy in a business, usually from top to bottom
83
09/11/16
What do we mean by span of control
The number of employees from whom a manager is responsible
84
14/11/16
What are the benefits of having a narrow span of control as a supervisor?
You know your employees better so you can create a more positive working environment
85
14/11/16
There is no correct number for having an effective span of control. The effectiveness will depend upon what?
The personality of the manager
The skills of the subordinates
The size of the business
86
18/11/16
What is meant by the chain of command
This is concerned with the way in which responsibility for employees is organised within a business
(Who you're in control of)
87
18/11/16
What do we mean by levels of hierarchy
This refers to the number of levels or layers in a business organisation
88
18/11/16
What is delayering
A process of reducing the number of levels or layers in an organisation
89
18/11/16
Advantages of delayering
Reduces costs
More employee responsibility
Quicker decision making progress
90
18/11/16
Disadvantages of delayering
Span of control will increase
Redundancy payments
Damage to staff morale
91
18/11/16
What is meant by delegation and empowerment
Delegation:
Where responsibility for carrying out a task or role is passed onto someone else in the business
Empowerment:
This is giving employees the power to do their job. E.g./ the authority make the decisions, plan their own work and solve their own problems
92
21/11/16
What are tall and flat structures also know as
Mechanistic (tall)
| Organistic (flat)
93
21/11/16
What type of span of control do tall and flat structures have
Tall - narrow span of control
| Flat - wide span of control
94
21/11/16
Advantages and disadvantages of tall structures
Advantages
- Promotion opportunities
- More direct contact with manager
Disadvantages
- Less motivated so employees don't feel as though they're trusted as much
- More layers of communication
95
21/11/16
Advantages and disadvantages of flat structures
Advantages
- Less layers of communication
- More delegation so employees feel more motivated
Disadvantages
- Less promotion opportunities
- Less of a relationship with your manager
96
21/11/16
What is a system structure
Arranging the business according to what each department does
97
21/11/16
What is a product structure
Organising according to the different products made
98
21/11/16
What does a clear structure make it easer to see
Which part of the business does what
99
21/11/16
Explain the 'by system' structure
The business is split into specialist areas. This means that each part of the 'system' has some input into the output of the businesses product(s)/service(s)
E.g. production, finance, purchasing, HR
100
22/11/16
Advantages and disadvantages of a by system structure
Advantages - specialists can concentrate on what they do best
Disadvantages - each part may act as a separate entity, concerned with its own agenda
- it can be difficult to accredit success and/or blame
- departments may not be able to clearly see their success
101
22/11/16
What is meant by organisation by product system
Each product becomes a 'mini company' with its own finance, HR, marketing departments etc
102
22/11/16
Advantages of an organisation by product system
You'll be able to see the success or blame in each department
Managers can focus energies on one product
Each centre has a lot of autonomy (independence)
Teams can see the direct result of their work
Specialist departments
103
22/11/16
Disadvantages of an organisation by product system
Different products compete for resources (i.e. Finance). This can cause conflict
Duplication of departments (i.e. HR) can waste resources
104
22/11/16
What is a matrix structure
This is where individuals work across teams and projects as well as within their own department or function
105
22/11/16
Advantages of a matrix structure
Can help to break down traditional barriers improving communication across the entire organisation
Can allow individuals to use particular skills within a variety of contexts
Avoid the need for several departments to meet regularly, so reducing costs and improving coordination
Likely to result in greater motivation amongst the team members
Encourages cross-fertilisation of ideas across departments - e.g. Helping to share good practice and ideas
106
22/11/16
Disadvantages of the matrix structure
Members of project teams may have divided loyalties as they report to 2 line managers. Equally, this scenario can put project team members under a heavy pressure of work
There may not be a clear line of accountability for project teams given the complex nature of matrix structures
Difficult to co-ordinate
It takes time for matrix team members to get used to working in this kind of structure
Team members may neglect their functional responsibilities
107
28/11/16
How can a centralised structure be defined and who makes the decisions in a centralised structure
A centralised structure is a business that keeps decision making firmly at the top of the hierarchy
The board make the decisions
108
28/11/16
Advantages of centralisation
Easier to implement common policies and practices for the whole business
Prevents other parts of the business from becoming too independent
Easier to co-ordinate and control from the centre (e.g. With budgets)
Economies of scales and overhead savings easier to achieve
Quicker decision-making (usually) which is easier to show strong leadership
109
28/11/16
Disadvantages of centralisation
More bureaucratic - often extra layers in the hierarchy
Local/junior managers are likely to be much closer to customer needs
Lack of authority down the hierarchy may reduce manager motivation
Customer service : lost flexibility and speed of local decision-making
110
28/11/16
How can a decentralised structure be defined and who makes the decisions
In a decentralised structure, decision making is spread out to include more junior managers in the hierarchy, as well as individual business units or trading locations
Region 1 and 2 make the decisions
111
28/11/16
Benefits of decentralised structures
Decisions are made closer to the customer
Better able to respond to local circumstances
Improved level of customer service
Can enable a flatter hierachy
Good way of training and developing junior management
Facilitates empowerment: should improve staff motivation
112
28/11/16
Drawbacks of decentralisation
Decision making not necessarily 'strategic'
Harder to ensure consistent practices and policies at each location
May be some diseconomies of scale - e.g duplication of roles
Who provides strong leadership when needed (e.g. In a crisis)
Harder to achieve tight financial control - risk of cost-overruns
113
02/12/16
What is the recruitment process
```
Identify a vacancy
Draw up a job description
Draw up a person specification
Advertise job
Review applications
Shortlist candidates
Interview
Appoint new employee
```
114
02/12/16
What is a job description and what is a person specification
Job description - document that describes the details of a worker. For example, write letters and answer the telephone
Person specification - a profile of the type of person needed for a job - their skills and qualities. For example, friendly persona and English Language grade B
115
02/12/16
What is internal and external recruitment
Internal recruitment is when a vacancy is filled with someone who already works in the organisation
External recruitment is when the organisation fills a post with someone from outside of the organisation
116
06/12/16
What is a CV
A document that contains a high level of detail about your past work, history and education
117
06/12/16
What is a CV
A document that contains a high level of detail about your past work, history and education
118
06/12/16
What is a covering letter
Something that is sent alongside a CV
119
06/12/16
What is included in a covering letter
Qualities
Personal statement
Why you want the job
120
06/12/16
What are 3 methods of selection
CV
Covering letter
References
121
06/12/16
What is the difference between a CV and a covering letter
A CV is a generic document but a covering letter is more personalised to the business about why you would fit with the organisation
122
06/12/16
What is included in an application form
```
Personal details
Availability
Nationality
Employment history
Criminal convictions
Date of birth
Verbal ability, maths and attitude tests
```
123
07/12/16
Advantage and disadvantage of a CV
Advantage - shows candidates organisation
Disadvantage - doesn't show personalisation
124
07/12/16
Advantage and disadvantage of a covering letter
Advantage - shows why you want the job
Disadvantage - too many to go through
125
07/12/16
Advantage and disadvantage of an application form
Advantage - all the same questions
Disadvantage - no personalisation
126
07/12/16
What is psychometric testing
This helps to identify a candidates skills, knowledge and personality
127
07/12/16
Explain the 2 types of psychometric testing:
A) personality tests
B) aptitude tests
A) personality tests explore your interests, values and motivations, analysing how your character fits with the role and organisation
B) aptitude tests assess your reasoning or cognitive ability, determining whether you've got the right skill set for a role
128
06/12/16
What does a CV include
Employment history, references, personal details and hobbies
129
04/01/17
What is an interview
Where an employer and candidate meet for the first time to discuss skills, knowledge and discuss the job avaliable in question
130
04/01/17
Advantages of an interview
You can identify whether a person is interested in the job or not
Candidates can be compared
131
04/01/17
Disadvantages of an interview
Candidates may not be honest
| Candidates may be nervous and not perform well despite being suitable for the job
132
09/01/17
What is training
This is the process of increasing the knowledge and skills of the workforce to enable them to perform their jobs effectively
133
09/01/17
Benefits of training
```
Improves efficiency
Customer satisfaction
Improves employee motivation
Increase productivity
Trained employees require less supervision
Equips staff with their skills
Helps the business to achieve their aims
```
134
09/01/17
What should be in an induction
Health and safety
Fire exits
Tour of the store to know where things are
Summary of job duties
Introduction to staff members
Contract info (break, holidays)
Disciplinary procedures (things not to do)
135
27/01/17
Name 2 new training methods
Distance and e-learning
| Vocational training
136
27/01/17
What is shadowing
This type of training depends on the business having spare capacity so that an experienced member of staff can deliver it
137
27/01/17
What is distance and e-learning
Individuals take responsibility for their own work under the supervision of a mentor/tutor
138
27/01/17
What is vocational training
This is instruction in the practical skills needed for certain jobs
139
27/01/17
What is the government now involved in in terms of training intiatives
Investors in people - this is developing skills in the workforce to meet government criteria in areas such as customer service
The Skills Funding Agency - this is a government organisation that provides £4 billion of support for colleges, private trainers and employees
140
30/01/17
What is an appraisal
This is a formal assessment of an employees performance
141
30/01/17
What will the organisation be aiming to achieve in an appraisal
```
Strengths
Development areas
Training needs
Pormotion opportunities
Pay
Bonuses
```
142
30/01/17
Benefits of an appraisal
Build a closer working relationship
143
30/01/17
Disadvantages of an appraisal
There may be a lack of commitment by senior staff
Line managers can be inconsistent
May not be enough time
Managers may not take employee concerns and aspirations seriously
Unrealistic targets could be set
Ambiguous language such as "you haven't don't too badly" could be used
144
30/01/17
Sections to an appraisal
```
Review of employees performance
Accomplishments
Employee details
Achievement of previous targets
Strengths
Future targets
Action plan
```
145
30/01/17
What is meant by self assessment method of appraisal
This is when employees assess their own performance, often using a tick sheet to grade aspects of their work. This can be used as a stand alone method or in advance if a management appraisal
146
30/01/17
What is meant by a 360 degree appraisal
This involves an employee receiving feedback from several people in the organisation. This is more appropriate for staff that work in large businesses with multiple teams
147
30/01/17
What is meant by a peer assessment appraisal
This is when the appraisal is carried out by a work colleague
148
31/01/17
Benefits of a self assessment appraisal
Employees can see areas of development
149
What is meant by employer/employee relations
This is the relationship between management and employees at national or local level
150
Identify 3 benefits of positive employer/employee relations
Willingness to compromise
Ability to co-operate
Mutual trust
151
Identify 3 negative impacts of poor employer/employee relations
Co-ordination may be affected
Employees must be comfortable to stay motivated
Employees not pleased with their work may change their job frequently
152
What is meant by a trade union
This is an organisation of employees that seeks to protect and improve the interests of its members. It does this by negotiating with employers on pay and conditions of work
153
What is industrial action
This is action taken by employees of a company as a protest, especially striking or working to rule
154
3 examples of industrial action that an employee might take
Strike
Actions short of a strike
Lock out
155
What is a strike
Where workers refuse to work for their employer
156
What is actions short of a strike
Where workers take action such as working to rule, go slows, overtime bans or callout bans
157
What is meant by a lock out
A work stoppage where the employer stops workers from working
158
What is meant by employee participation
This is where employees have the ability to participate in the decision making process at work
159
Identify the benefits of employee participation
Increased levels of motivation
Better communication
Improved quality of decision making
Complying with the law
Reduced labour turnover and, therefore, reduced recruitment costs
Fewer days lost through work-related injuries and illnesses
Ability to manage change more effectively
160
What I said meant by a works council
This is a formal meeting of managers and employees in a particular factory (or the business as a whole) to discuss pay and working conditions or grievances, and negotiate issues such as changes in working practices
161
31/01/17
Factors that help ensure an appraisal system is effective
You need a good third party non judgemental mentor to assess the employers performance
An employee that is bothered about appraisals so it doesn't waste any productivity time
An mployer who doesn't feel it's a waste of time.
162
What is meant by labour turnover
This is the percentage of workforce (employees) that leave a business within a given period (usually a year)
163
What is the formula for calculating labour turnovers
(Number of employees leaving during period/average number employed during period) x 100
164
Why are the issues caused by high levels of staff turnover
Higher costs
Increased pressure on remaining staff
Disruption to production
Harder to maintain required standards of quality and customer service
165
Why is labour productivity important
This could lead to higher wages and better working conditions. For the government, increased productivity means higher taxes
166
Which factors impact labour productivity
Qualifications and morale of workers
Rules and regulations
Substitution of capital to labour
167
What Is the formula for calculating labour productivity
Output/average number of employees
168
What is the formula for calculating absenteeism
(Total days absent in a month x 100) / (total available working days in a month x number of employees)
169
Why does sickness represent a cost for the business
Because there will be less production made, however, the fixed costs will stay the same whether you have all of your staff working or just a few of them
170
What is the formula for calculating lateness
(Total number of late arrivals x 100) / (total number of scheduled arrivals x number of employees)
171
10/02/17
What is redundancy
This is a form of dismissal. It happens when employees need to reduce their workforce
172
10/02/17
What is dismissal
This is the termination of the contract of employment of an employee, often as the result of a disciplinary procedure
173
10/02/17
What is unfair dismissal
Where an employee is dismissed without a valid reason OR th employer fails to follow the proper procedures
174
10/02/17
State the dismissal process
First verbal warning
First written warning
Final written warning
Dismissal
175
10/02/17
What is meant by ACAS
Advisory
Conciliation
And arbitration service
176
20/02/17
Main points about autocratic leadership
Full control of decision making
Employees have little or no input
Motivation through rewards
Use power to get others to carry out work as a result of this decision making
177
20/02/17
Main points about paternalistic leadership
Leader decides what is best for employees and addresses their needs
Akin to a parent/child relationship - where the leader is seen as a 'father figure'
Still little delegation
Typical paternalistic leader explains the specific reason as to why he/she has taken certain actions
178
20/02/17
Main points about democratic leaderships
Focus of power is more with the group as a whole
Leadership functions are shared within the group
Employees have greater involvement in decision making
Emphasis on delegation and consultation
179
20/02/17
Main points about a laissez-fairy leadership
Gives employees little direction
As a result, responsibility lies with the group
Leaders get employees to choose how to complete objectives, make decisions and resolve problems on their own
180
21/02/17
Advantages of a paternalistic leadership
Persuades employees to think negatively about their views - this encourages employees to improve
Closer working relationship leading to increased motivation
181
21/02/17
Disadvantages of a paternalistic leadership
Employer may view the employee as their responsibility so treat them as a child
182
21/02/17
Advantages of an autocratic leadership
Found in highly centralised businesses so there needs to be a strict work order
Important deadlines that need to be met is a good situation here
Decision making is quicker
183
21/02/17
Disadvantages of an autocratic leadership
Could be stern and abrupt which could lead to demotivation from employees
More difficult relationship as the employer is viewed as stern so less communication
Employee may feel they are being controlled
184
21/02/17
Advantages of a laissez-faire leadership
Good for particular projects as a manager may not want to be seen to be constantly 'checking up' on employees
Employees can become well motivated and enjoy responsibilities
185
21/02/17
Disadvantages of a laissez-faire leadership
May appear distant from the workplace meaning employees may feel uncomfortable
Business will be ineffective if employees don't enjoy responsibilities
186
21/02/17
Advantages of a democratic leadership
Friendlier and willing to listen
Encourage creativity and autonomy at all times
Inclusive so should lead to better decisions being taken
Closer working relationship so easier to communicate leading to quicker decision making
187
21/02/17
Disadvantages of a democratic leadership
Not good at getting important deadlines met as there is less responsibility on the top employer
Process takes more time, but time isn't always available
188
22/02/17
How does a theory X manager view employees (autocratic)
Most employees dislike work and will avoid it as mich as possible
Managers need control, threaten punishments and force workers to do their job
Most employees prefer to be directed, avoids responsibility and have low ambition
Employees are motivated by fear and money
189
22/02/17
How does a theory Y manager view employees (democratic)
Employees like to work
People enjoy working towards goals
Commitment to goals increases based on perceived reward for achieving them
Most employees seek responsibility
An mployees intellectual potential is only partially realised
Employees are motivated by a variety of rewards
190
27/02/17
What is motivation
A strong desire to act in a particular way and achieve a certain result (the will to want to work)
191
27/02/17
What is morale
Refers to 'spirit'. If morale in an individual, group or team is high then there exists a spirit of confidence, purpose etc
192
27/02/17
Benefits of a motivated workforce
```
Reduces absenteeism and lateness
Increased productivity
Reduced employee takeover
Commitment (extra work)
Business reputation
Change easier to implement
```
193
27/02/17
What is included in monetary methods of motivation
Commission
Profit sharing
Bonus payment
Piece rates
194
27/02/17
What is included in non monetary methods of motivation
```
Job enrichment
Job enlargement
Team work
Environment
Praise and fear
```
195
27/02/17
What do we mean by piece rates
Receiving a set amount of money per product you manufacture (weakness is lower quality products)
196
27/02/17
What do we mean by job enrichment
Giving an employee extra responsibility
197
27/02/17
What do we mean by job enlargement
When an employee gets more jobs to do
198
03/03/17
Key aspects to Taylor's motivation theory (1856 - 1917)
- scientific approach - this means that the same approach can be replicated
- jobs are broken down into simple tasks and then the best suited candidates are trained to specialises in their task
- workers are paid via piece rate
- the theory is of the belief that linking reward to effort increases productivity
199
03/03/17
Limitations to Taylor's motivation theory (1856 - 1917)
- not suitable for all jobs
- doesn't take into account psychological factors (feelings)
- outdated - more workers now looking for job satisfaction
200
03/03/17
Key aspects to Mayo's motivation theory (1880 - 1949)
-research pointed to the fact that psychological factors are also important
201
03/03/17
Limitations to Mayo's motivation theory (1880 - 1949)
- implementing all of these changes means that it is difficult to know which is helping to increase productivity
- in the 21st century, workers may take these factors for granted
202
03/03/17
What is meant by a content theory
This deals with the issue of 'what motivates employees?' And are therefore concerned with identifying needs and then using motivation to fulfil these needs
203
03/03/17
What is meant by a process theory
This deals with the 'process' of motivation itself and are concerned with the issue of 'how motivation occurs'
204
03/03/17
Key aspects of McClelland's motivation theory (1917 - 1998)
- three needs theory (achievement, affiliation, power)
- if one of the needs is more dominant, it will influence a workers behaviour
- believed that if an employees dominant need is identified, then they can be managed and thus motivated appropriately
205
03/03/17
Limitations of McClelland's motivation theory (1917 - 1998)
- meeting an employees needs will not always be beneficial for the business
- workers personalities aren't necessarily what drives them at work
- meeting one employees needs may demotivate other employees
- employees often need to be 'all rounders'
206
03/03/17
What does affiliation mean and give the characteristics of an affiliation personality
This is the idea of belonging to something
Characteristics:
-prefers to collaborate
-people orientated rather than task orientated
207
03/03/17
Give achievement and power characteristics
```
Achievement characteristics:
-prefers challenging goals
-likes to work on a task/project
-likes to work with others
Power characteristics:
-likes to influence and encourage
-enjoys recognition and status
```
208
03/03/17
Key aspects of Herzberg's motivation theory (1923 - 2000)
- two factor theory (hygiene, motivating)
- hygiene factors are factors such as pay and working conditions. Herzberg believed that the absence of them caused dissatisfaction, but that employees aren't motivated by them
- motivating factors are factors such as responsibility, recognition, praise, rewarding work and promotion
209
03/03/17
Limitations of Herzberg's motivation theory (1923-2000)
- the way in which workers classify factors may depend on the nature of their job
- employees personalities may also influence how much importance they place on particular factors
- some people may get job satisfaction from hygiene factors - particularly the environment
- job enlargement and rotation may be simply viewed as 'more work for the same pay'
- may be a challenge to enrich unskilled workers
210
03/03/17
Limitations to Maslow's motivation theory (1908 - 1970)
- some employees may not require their higher order needs to be met in work
- order of needs may be different per person
- it would be a challenge for businesses to meet all the needs of every employee
211
03/03/17
5 stages of Maslow's hierarchy of needs (top to bottom)
```
Self actualisation (self fulfilment - promotion)
Self esteem (employee of the month)
Social needs (teamwork)
Safety needs (health and safety checks)
Survival
```
212
06/03/17
Key aspects to Vroom's motivation theory (1932-)
Expectancy theory
Employees will firstly make decisions based upon what they expect will happen i.e. whether they believe they are able to fulfil a task
Employees will also take into account valence
Vroom's research suggests that people have to believe that they are able to gain a reward they desire
213
06/03/17
What is meant by valence
This is the value that they place on the reward on offer
214
06/03/17
Vroom's idea of managers roles to achieve motivation
Managers can calculate the likelihood of motivation by calculating the expectancy by valence
Managers must make sure that the reward is worth having and that promises of rewards are fulfilled
Managers must ensure resources to achieve are in place
Managers must ensure targets are achievable
215
06/03/17
Calculation to work out motivation and explanation
Motivation = (valence x expectancy)
0=no motivation
1=full motivation
Having a high level of motivation means the employee will be more motivated to achieve the task
216
06/03/17
Limitations to Vroom's motivation theory
Valence isn't scientific (opinionated)
People place different values on rewards
Reward might be difficult to correlate to performance
Costs of financial rewards might be too high
217
06/03/17
Key aspects to Drucker's motivation theory (1909-2005)
'The King of the management gurus'
Drucker believed good management was crucial. He referred to it as ... "the organ that converts a mob into an organisation and human effort into performance"
He believed people are an asset, and not a cost to be minimised
He is known for his concept of 'management by objectives'
218
06/03/17
Key suggestions about Drucker's motivation theory
```
Decentralise and delayer as much as possible
Take an interest in your employees
Offer on-going training
Consider employees social needs at work
Ensure rewards are fairly shared
Communicate objectives
Set goals with employees
Coined the term 'knowledge worker'
```
219
06/03/17
Limitations to Drucker's motivation theory
Relies on good leadership skills
| Some employees wont be motivated by 'non-monetary' methods
220
06/03/17
Key aspects to Locke's motivation theory (1938-)
Goal setting theory
Locke proposed that employees like to have goals and enjoy working towards them
Locke's research suggests 5 principles that should be followed when setting goals. These are: clarity, challenge, feedback, commitment and task complexity
Conclusions of his research state that effective goals are specific and challenging to achieve
221
06/03/17
Limitations to Locke's motivation theory
Employees may work towards goals at the expense of other parts of their job
Setting targets alone will not necessarily work
Goal setting requires monitoring and feedback
Can be demotivating if employees don't achieve goals
Goal setting may prevent employees considering wider organisation
222
06/03/17
Key aspects to Peter's motivation theory (1942-)
Management guru
Said managers dislike change and are obsessed with 3 things : numbers, control and bureaucracy
The theory of excellence
223
06/03/17
Key suggestions to Peter's motivation theory
Recognition of employees is needed
Managers should give employees a sense of self worth
Encouraging participation
Trying to offer continuous employments (this gives employees a sense of security)
224
06/03/17
What is meant by the theory of excellence
This is how an organisation sets out to get excellence from all employees
225
06/03/17
Limitations to Peter's motivation theory
Peter's has been accused of inconsistency
Depends on leaders abilities to be able to get excellence out of the employees
Not all employees want to be excellent
226
How is market share calculated
(Sales value/volume for the individual business/sales value/volume for the whole market) x 100
227
How is market growth calculated
(Increase (or decrease) in total sales by value or volume/original sales value or volume) x 100
228
What is meant by market segmentation
The process where the market is split in to different groups with different characteristics and needs
229
What is meant by contract of employment
This is an agreement between a business and an employee, under which each of them has certain obligations
230
What is the minimum wage legislation
The Minimum Wage Act 1999 lays down the minimum level of pay to which employees aged 18 years and over in the UK are entitled. It doesn't matter if an employee if in a part-time or full-time employment
231
What is the Health and Safety at work act 1974
This creates a healthy and safe working environment so an employees health, safety and welfare at work are protected by law. The HSWA places a duty on employees to comply with legal provisions regarding health and safety. A business must comply 'so far as is reasonably practicable'
232
What is the equality act 2010
This reasserted that women and men are entitled to be paid equal amounts for work of equal value. The same reasoning applies to the provision of any benefits such as private healthcare or a company car
233
What is the data protection act 1984
This makes sure the business is not allowed to disclose employee-related records to other individuals within the business or another organisation. It is designed to prevent harm resulting from the misuse of any data that is held
234
`What is meant by grievances
This exists when an employee has a concern, complaint or problem. They should be dealt with at an early stage, informally, with an employees immediate line manager
235
What is meant by the working time directive
This is where a business must not allow an employee to work more than 48 hours per week on average. It is partly aimed at reducing the UK's culture of long working hours. There are also provisions relating to an employee entitlement to rest breaks and the pattern of shifts that can be worked
236
What is the work and families act 2006
Maternity leave was already a legal right and this act enshrined the right to paternity leave in law. It also introduced rights to paid leave for parents adopting children, and the right for parents of young children to apply to work flexibly
237
What is meant by an employment tribunal
This is a special sort of court dealing only with employment law; for example, an employees claim for unfair dismissal, discrimination or victimisation by their employer
238
How do EU regulations and directives differ from EU legislation
Legislation emanating from the European parliament is different from regulations as they have to be adopted and applied in a certain way, whereas it is up to the individual member country to decide how to implement a directive
239
17/03/17
Give examples of the types of market segmentation with examples
- age (cruises aimed at pensioners)
- location (south uk aimed at older people - Bournemouth)
- gender (tampons)
- social class (bentleys aimed at upper class)
- residence (type of accommodation)(council house)
- religion or ethnic grouping
- income (Rolex watches are aimed at higher income)
240
17/03/17
Benefits of market segmentation to a business
- better matching of customer needs
- enhanced profits for business
- better opportunities for growth
- retain more customers
- target marketing communications
- gain share of the market segment
241
17/03/17
Limitations of market segmentation to a business
- lack of information and data: some markets are poorly researched with little information about different customer needs and wants
- difficulty in measuring and predicting consumer behaviour: humans dont all behave in the same way all of the time
- hard to reach customer segments once identified
242
17/03/17
What is meant by market research
This is the process of discovering customers needs and wants, through the collection and analysis of data about a particular target market
243
17/03/17
What is meant by quantitative research
Objective/ involves the collection of numerical data
244
17/03/17
What is meant by qualitative research
Subjective/ involves the collection of opinions
245
17/03/17
What is meant by primary/field research
Collection of new data
246
17/03/17
What is meant by secondary/desk research
Data that already exists/could be internal or external
247
21/03/17
What is meant by bias
This is the difference between the truth and an actual answer you get
248
21/03/17
What is a SWOT analysis
This can help a business to consider it's competitive situation and decide on a strategy for the future
249
21/03/17
What are the 4 aspects to a SWOT analysis and explain them
Strengths - these are areas you do well/advantages of your organisation
Opportunities - these are external factors that may contribute to your organisation and can build up your strengths
Weaknesses - these are areas to be improved
Threats - these are potential problems/risks caused by external factors that your organisation may face
250
21/03/17
Which are internal factors and which are external factors of a SWOT analysis
Strengths and weaknesses are INTERNAL
| Opportunities and threats are EXTERNAL
251
22/03/17
Strengths of a SWOT analysis
Logical structure
Focuses on strategic issues
Encourages analysis of external environment
252
22/03/17
Limitations of a SWOT analysis
Too often lacks focus
Independent
Can quickly become out-of-date
253
22/03/17
Market segmentation, market research and a SWOT analysis need what to be carried out effectively
Marketing resources
254
22/03/17
List some marketing resources
Marketing budget
Set of objectives
Knowledge of a market
Marketing department, or person responsible for the function
255
22/03/17
Why is marketing strategy needed
Strategic planning is a vital element of the marketing process. To be able to develop and use a marketing strategy effectively, the business must have an in-depth knowledge of its market, its competition and its consumers
256
What is meant by a niche market
This targets a clear and identifiable segment of the market
257
What is meant by mass marketing
This is selling into a market containing many products that are similar
258
Advantages of niche marketing
```
Less competition
Clear focus
Builds up specialist skills and knowledge
Can often charge a higher price
Profit margins often higher
Customers tend to be more loyal
```
259
Disadvantages of niche marketing
Lack of economies of scales
Risk of overdependence on a single product/market
Likely to attract competition if successful
Vulnerable to market changes
260
Key features of a mass market
Customers form the majority in the market
Customers needs and wants are more general than specific
Can benefit from economies of scales
261
1 advantage and 1 disadvantages of a mass market
Advantage - wider target audience
| Disadvantage - increased competition
262
What does planned purchases mean
When you plan to buy something
263
What does impulse purchases mean
When you spontaneously buy something
264
What is meant by customer/market orientation
Getting the right product
265
What is meant by product orientation
Gets the product right
266
Disadvantages of a product orientated business
Could miss opportunities
| Sales are limited
267
Explain the difference between a customer and a consumer
A customer pays and purchases a product or service. A consumer is the user of the product or service, however, the consumer may not have paid for the product or service
268
03/04/17
What is meant by simple random sampling
This is when individuals are randomly selected from a list of the population. This makes sure that every member of the population has an equal chance of selection
269
03/04/17
What is meant by systematic sampling and give an example
This is taking the whole population and dividing that number by the amount of samples you want then asking every nth person
E.g. if Morrisons had a 6,000 population and wanted 200 samples. 6000/200=30. So every 30th person would be asked
270
03/04/17
What is meant by quota sampling and give an example
```
This is when the aim is to obtain a sample that is "representative" of the overall population. It involves splitting the population into sub-groups according to their distribution in the population
E.g. 15% of Morrisons customers = class C. 20% = class D. The sample will have 15% C and 20% D in them
```
271
03/04/17
What is meant by convenience sampling and give an example
This is using people who are most convenient to question
E.g. doing a supermarket questionnaire in the middle of the day disregards workers and will only sample people who are retired, on holiday or work close by
272
03/04/17
What is meant by cluster sampling and give an example
Units in the population can often be found in geographic groups or "clusters". A random sample of clusters is taken, then all units within the cluster are examined.
E.g. Morrisons might question all customers using checkout lane 4
273
03/04/17
What is meant by stratified sampling and give an example
This is choosing a sample from a total number of people and finding the correct value for the % of people of the total amount to be the same % as the sample
E.g. find a stratified sample of 120
Year 7 Year 8 Year 9 Year 10 Year 11 Total
40 30 60 70 40 240
20 15 30 35 20 120
240/120=2 so 1/2 of each original value
