SVT CASE STUDY PAPER 1 Flashcards
(54 cards)
What is a vision statement?
A general statement on where the business wishes to be in the future and the values it holds; What it wants to become and what it wants to achieve.
What are business sectors?
Are four broad types of business activity:
1. Primary: extracting natural resources.
2. Secondary: Manufacture of products
3. Tertiary: commercial services
4. Quaternary: IT businesses.
What is a monopoly?
Total control over a market.
What is profit?
The money the company has left after paying for all expenses.
What are the leadership styles?
A leader’s methods and behaviours when directing, motivating, and managing others.
What is situational leadership style?
Leaders that adapt its leadership style to the situation (best kind).
What is the autocratic leadership style?
Leadership style where leader takes decisions independently and strict
What is a cultural clash?
When two cultures are incompatible/induce conflicts
What is labor productivity?
Ratio of output in certain time period per workers employed
What are external factors?
Factors that impact a business but that it has no control over (STEEPLE)
What are internal growth strategies?
Increased profit achieved by the use of the company’s own resoruces (ex.: improve products, better marketing, invest in R&D, improve workforce training, expand # of offices) → relatively inexpensive due to use of retained profits
What are external growth strategies?
Growth through:
-Mergers and acquisitions (M&As)
-Joint ventures
-Strategic alliances
-Franchising
What is Acquisition/M&A/Takeover?
Two firms becoming one larger business due to one firm buying the other in a voluntary or hostile takeover
What are income stream?
The various sources from which a business earns money from the sale of goods or the provision of services
What is a public limited company?
Trades shares on the stock market (+ limited liability, easy access to finance/more funds, EOS; - must publish financial reports, less control, potential bureaucracy)
What is the product range?
Are all the types of products that a company sells
What is a family-owned business?
The commercial organization in which decision-making is influenced by multiple generations of a family
What are the methods of motivation?
Motivational Theories (Pink, Adams, Maslow, Taylor, Herzberg), Financial Rewards (Pay, Wages, Commissions, Fringe Benefits, etc.), Non-financial rewards (Job rotation/ enlargement/enrichment)
What are economies of scale?
Reductions in a firm’s unit (average) costs of production that result from an increase in the scale of operations
What is incentive payment?
a type of payment that is made to employees in addition to their normal salaries
What is a flexible working contract?
Temporary and part time contracts
What is recruitment?
the process of identifying the need for a new employee, defining the job to be filled and the type of person needed to fill it, attracting suitable candidates for the job and selecting the best one
What is induction training?
To familiarise new recruits with the systems used in the business and the layout of the business site; usually done before the official first day of work
What is Labor turnover?
measure the rate at which employees are leaving an organisation.
