Key Terms

Question 1

Span of control

Answer 1

The number of employees someone has direct control of and who they are responsible for

Question 2

Wide span of control

Answer 2

Many subordinates

Question 3

Narrow span of control

Answer 3

Few subordinates

Question 4

Benefits of wide span of control

Answer 4

More ideas being shared

Cheaper to operate as there are less managers

Question 5

Disadvantages of a wide span of control

Answer 5

Communication more difficult and time consuming

Fewer promotion opportunities

Question 6

Benefits of narrow span of control

Answer 6

Staff supported more effectively

More promotion opportunities

Question 7

Disadvantages of a narrow span of control

Answer 7

Expensive, staff may feel they have no freedom

Question 8

Chain of command

Answer 8

Refers to the lines of authority within a business

Question 9

Organisational design

Answer 9

Refers to how people and management are organised in a business

Question 10

Matrix structures

Answer 10

Exist where individuals work across teams and projects as well as within their own department or function

Question 11

Barrier to entry

Answer 11

Factors that make it hard for new forms to break into an existing market (e.g. Strong brand loyalty to the current market leaders)

Question 12

E- commerce

Answer 12

Literally, electronic commence- carried out online

Question 13

Impulse purchasing

Answer 13

Buying in an unplanned way ( e.g. Going to the shops for a paper but buying a mars bar and a Coke too)

Question 14

Long tail

Answer 14

The huge number of tiny businesses appealing to minority tastes that can find a profitable existence online because they can target the whole planet, not just the local area

Question 15

Opportunity cost

Answer 15

The cost of missing out on the next best alternative when making decisions

Question 16

Wholesalers

Answer 16

The middleman between between the producer and retailers, who breaks bulk down from container lofty- loads into manageable parcels

Question 17

Flexible working

Answer 17

Working arrangements were there are a variety of options offered to employees in terms of working time, location and the the pattern of working.

Question 18

Multiskilling

Answer 18

Where staff are allowed to carry out a variety of task rather than specialise

Enables greater use of Jon rotation

Question 19

Outsourcing

Answer 19

Delegating one or more business processes to an external provider, who then owns, manages and administers the selected processes to an agreed standard

Question 20

Off shoring

Answer 20

The work is done over seas

Question 21

Outsourcing

Answer 21

Someone else does the work for us

Question 22

Employee representation

Answer 22

Arises when employees are part of a formal structure for involving them in the decision-making process of a business

Question 23

Main role of trade unions

Answer 23

Protest and improve the real incomes of their members
Provide or improve job security
Protect workers again unfair dismissal
Lobby for better working decision

Question 24

Pricing method?

Answer 24

The method used to calculate the actual price set

Question 25

Pricing strategies

Answer 25

Adopted over the medium to long term to achieve marketing objectives, have a significant impact on marketing strategy

Question 26

Pricing tactics

Answer 26

Adopted in the short term to suit particular times

Question 27

Distribution

Answer 27

Is about availability, ( how to get the product to the right places for customers to make their purchases)

Question 28

Loss leader

Answer 28

A product prominently displayed, advertised, and priced below the normal price and even below cost to the seller

Question 29

Resources

Answer 29

The items the business use to produce and sell their product or service

Question 30

Resource management

Answer 30

Requires planning and control at every stage of the supply chain from purchasing to customer delivery Needed To make sure the business uses the resources efficiently

Question 31

Long tail?

Answer 31

The huge number of tiny businesses appealing to minority tastes that can find a profitable existence online because they can target the whole planet, not just the local area

Question 32

Opportunity cost?

Answer 32

The cost of missing out on the next best alternative when making decisions

Question 33

Wholesaler?

Answer 33

The middleman between the producer and retailers, who breaks bulk down from container Lorry-loads into manageable parcels