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Business A-level > Theme 1 > Flashcards

Theme 1 Flashcards

1
Q

What is a mass market?

A
  • Mass markets target large population of market with a generic product.
  • Production: large scale, investment in capacity.
  • Potentially high revenues.
  • Promotion: TV, newspapers.
  • Strong brand image is important.
  • Compete on prices for success.
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2
Q

What is a niche market?

A
  • Niche markets target a small population in a market with a specialised product.
  • Production: small scale.
  • Low volume but high profit margins.
  • Promotion: specialised mediums, direct marketing.
  • Businesses compete on quality and customisation.
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3
Q

What is market size?

A

Market size is the measurement of volume in a given market.

Market size: (Total amount consumers spent on product) / (Total quantity sold by business).

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4
Q

What is market share?

A

Market share is the proportion of a particular market held by a business and can be a measure of success.

Market Share: (Sales of a business) / (Total sales in the market) x 100

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5
Q

What is primary market research- ✓ and X?

A
  • Research collected first hand.
    ✓- specific to needs of the business.
    ✓- more up to date and reliable
    ✓- better for two-way commuication and follow-up questions.
    X- more time consuming and therefore more costly.
    X- difficult to conduct a large sample size.

e.g questionnaries, consumer panels, interviews, focus groups, customer observations.

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6
Q

What is seconday market research?

A
  • Research that already exists, conducted by an organisation.
    ✓- easily accessible and a good starting point.
    ✓- fast and less time consuming.
    ✓- often better if you want to collect quantitative data.
    X- some data can be free but detailed reports can be expensive to purchase.
    X- it is not always up to date or specifically tailored to the business’ needs.

e.g market research reportss, competitors, websites, government statistics and newspaper articles.

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7
Q

What is product and market orientation?

A

Product orientation- focused on production efficiencies and the product itself (product features, profit margins and efficiency).

Market orientation- focused on conumer needs. Understanding customers and developing products that meets their needs (customer attitudes, characterisitics and how the product is used).

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8
Q

What is market research used for?

(Limitations?)

A
  • Identify and anticipate customer needs and wants.
  • Quantify likely demand.
  • Gain insight into consumer behaviour.
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9
Q

What IT can be used to support market research?

A
  • Collecting market research through websites.
  • Social media/ networking.
  • Analysing information in databases.
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10
Q

What is the value of market segmentation?

(Positives?)

A

Market segmentation is the process of dividing customers within a market into distinguishable groups to target customers: behavioural, psychological, geographical.

  • Differentiate itself from its competitors.
  • Develop and build its brand.
  • Identify and satisfy the needs of a specific group of customers.
  • Reach its customers with relevant marketing activities such as advertising.
  • Focus the business activities.
  • Build loyalty towards its brand and products.
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11
Q

What is sampling? (✓?)

A

Sampling involves selecting a represntative group of people from the target population.
✓- quicker and easier than trying to collect research from everyone.
✓- the bigger the sample size, the more representative it will be.

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12
Q

What are market maps- ✓ and X?

A

Market mapping is a technique used to understand how products/businesses are viewed relative to competitors based on two variables.
✓- useful for comparing similarities and differences between businesses- market positioning.
✓- it helps gain a better understanding of its competition.
✓- useful for market research tool to gain an understanding of customer perceptions.
X- perceptions of customers, society and other businesses are often very complex and might not fit into this model.
X- shareholders may have a different opinion of where the business is or should be positioned.

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13
Q

What is product differentiation?

A

Product differentiation is the process of making a product different from a competitor’s products. It can be acheived by: developing a USP, improving customer experience, building good relationships with customers, compeititive pricing.

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14
Q

How can a business gain a competitive advantage/ add value?

(RAI)

A
  • Reputation- brand image/ values.
  • Architecture- relationship with a business that creates a synergy between suppliers, customers and the employees of a business.
  • Innovation- the ability of a business to create a new products (can be patent protected).
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15
Q

What are factors affecting demand?

A
  • Changes in prices of substitutes and complementary goods
  • Changes in consumer income
  • Fashion, tastes and preferences
  • Advertising and branding
  • Demographics
  • External shocks
  • Seasonality
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16
Q

What are factors affecting supply?

A
  • Changes in cost of production
  • New technology
  • Indirect taxes
  • Government subsidies
  • External shocks
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17
Q

What is the interaction between supply and demand?

A
  • If the price of a product rose, then the demand will fall.
  • If the price drops, then demand will typically rise, but businesses need to ensure that producers are willing to produce and supply at this price.
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18
Q

What are the effects of changes in demand?

A

As demand increases, then will prices will rise. This is because producers will react by putting up their prices. The opposite will happen if demand falls.

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19
Q

What are the effects of changes in supply?

A

If supply increases, then prices will fall. This is because there will be excess supply and producers will lower their price in order to sell all of their goods. The opposite will happen if there is a fall in supply.

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20
Q

What is price elasticity of demand?

A

PED is the responsiveness of quantity demanded to change in price.

(% change in quantity demanded) / (% change in price)

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21
Q

What is price elastic and inelastic?

How is this influenced with price increase or decrease?

A
  • Price elastic:
    When price increases, it leads to a bigger % decrease in quanitity demanded so revenue falls.
    When price decreases, it leads to a bigger % increase on quanitity demanded so revenue rises.
  • Price inelastic:
    When price increases, it leads to smaller % decrease in quantity demanded so revenue rises.
    When price decreases, it leads to a smaller % in quanitity demanded so revenue falls.
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22
Q

What factors influence PED?

A
  • Price of substitutes/ competitors.
  • Relative effort/costs of switching to another product for consumers.
  • Extent to which the product is a necessity.
  • Perceived value of the brand.
  • The PED for a product will tend to fall over time as consumers find substitutes.
  • % of income spent on the product.
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23
Q

What is income elasticity of demand?

A

YED is the responsiveness of demand to changes in incomes.

(% change in quanitity demanded) / (% change in income)

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24
Q

What is income elastic and inelastic?

A

Income elastic is where an increase in incomes means an increase in quantity demanded.
Income inelastic is where an increase in incomes means a decrease in quantity demanded.
> +1 is income elastic (luxury product).
> 0 but < 1 is income inelastic (necessities).
< 0 is income inelastic (inferior/ substitutes).

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25
Q

What factors influence income elasticity of demand?

A
  • Is the product a necessity?
  • Is the product a luxury?
  • The price relative to people’s income (%).
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26
Q

What is the design mix?

How is this adapted for social trends? Any benefits?

A

The design mix consists of function, aesthetic and cost.

Adaption for social trends:
- waste minimisation
- products designed for re-use
- products that can be recycled
- products sourced ethically
✓- can be USP
✓- help business image, more socially responsible.

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27
Q

What are the different types of promotion?

(Above-the-line and Below-the-line)

A

Above-the-line promotion is any form of advertising through the media including TV ads, newspapers, radio.

Below-the-line promotion is promotion that isn’t advertising including sales promotions, merchandising, direct selling.

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28
Q

What is the purpose of an advert

1I, 1P, 2R

A
  • Inform customer
  • Reassure customers
  • Remind customers
  • Persuade
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29
Q

What are ways to build a brand?

A
  • USP/ differentiation
  • Advertising
  • Sponsorship
  • Social media
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30
Q

What are the benefits of strong branding?

A
  • Added value
  • Ability to charge premium prices
  • Reduced PED
  • Helps competitiveness
  • Brand image
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31
Q

How can a business change their brand to reflect social trends?

A
  • Viral marketing- sharing images and videos online helps to build brand awareness.
  • Social media- followers on social media sites are key for marketing spending.
  • Emotional branding- businesses often associate their brands with things that consumers have strong emotional connections with, such as sports teams or good causes.
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32
Q

What are the different pricing strategies?

(4Ps and 2Cs)

A
  • Predatory pricing (set low price to drive out competitors but business make loss until competitor fails).
  • Psychological (99p)
  • Price skimming (high to low pricing, good for high demand)
  • Price penetration (low to high prices, used for new product in new market and price increases as demand increases)
  • Competitive pricing (charge similar to rivals, used in competitive markets and helps avoid price wars)
  • Cost-plus pricing (price based on unit cost with percentage as a mark up, good as considers favourable profit margins)
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33
Q

How can a business adapt prices to reflect market trends?

A
  • Auction sites (e.g Ebay)
  • Personalised pricing (online databases collect customer information and allow businesses to target them with personal price).
  • Subscription pricing (monthly fee, e.g Netflix)
  • Price comparison sites (e.g Trivago).
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34
Q

What factors determine appropriate pricing strategy?

A
  • Number of USPs
  • PED
  • Level of competition
  • Strength of brand
  • Stage in product life cycle
  • Costs and need to make profit
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35
Q

What are the intermediaries in a distribution channel?

A
  • Agents and brokers
  • Retailers
  • Wholesalers
  • Direct selling
36
Q

What are the different types of distribution channels?

A
  1. Manufacturer > Wholesaler > Retailer > Consumer
  2. Manufacturer > Wholesaler > Consumer
  3. Manufacturer > Retailer > Consumer
  4. Manufacturer > Consumer
37
Q

What is online distribution (e-commerce)- ✓ for businesses and consumers?

A

E-commerce is the buying and selling of products/ services online.
For Businesses:
✓- E-tailers don’t have the costs of operating retail stores
✓- lower start up costs so easier to launch small business
✓- transactions are more secure
✓- sales 24/7
For Customers:
✓- lower prices as e-tailers pass on lower costs
✓- can shop 24/7
✓- comparison websites
✓- wider choice

38
Q

What is the product life cycle?

A
  1. Research and development
  2. Introduction- prices may be low to initiate sales, heavy promotion needed, low number of product variations launched.
  3. Growth- prices may increase with popularity, new distribution methods, need to keep up with demand.
  4. Maturity- consider cutting prices to maintain demand, promotion slows as customers are aware of product, focus on retention and repeat purchases. (add extension strategies- design mix)
  5. Decline- further cuts to maintain demand, variety of products streamlined.
39
Q

What is product portfolio analysis (PPA)- ✓ and X?

A

PPA can be used to analyse and track the development of multiple products over time.
✓- useful analysis tool for a business with a wide product range.
✓- useful for making decisions about where the funds should be allocated
✓- can be used to predict future sales and therefore plan production/ distribution.
X- products and markets are complicated and don’t necessarily follow a pattern
X- doesn’t provide clear solution for business.
X- PPA simplifies what can be a complex issue.

40
Q

What is the Boston Matrix?

A

Relative market share (cash generation). Market growth rate (cash usage).
- Stars: high market share, high growth rate (leading branf in market, high demand).
- Question marks: low market share, high growth rate (fast-growing market but not yet establoshed product).
- Cash cows: high market share, low growth rate (successful products in mature markets).
- Dogs: low market share, low growth rate (invest to revitalise or discontinue products).

41
Q

How can a business adapt the marketing mix for mass markets?

A
  • Product- products may be generic and so businesses need to find a USP.
  • Price- competitor prcing and managing costs are key to success as many products will have similar price.
  • Promotion- heavy advertising and promotion to build brand image.
  • Place- multiple channels of distribution, including e-commerce.
42
Q

How can a business adapt the marketing mix for niche markets?

A
  • Product- significant difference in products so important to communicate these differences.
  • Price- premium pricing due to USP.
  • Promotion- targted using specialist media.
  • Place- likely to sell directly to consumers.
43
Q

What is B2B and B2B marketing?

A

B2B- business to business marketing requires more information on how a product/sercice can reduce costs or increase productivity.
B2C- business to consumer marketing involves emotive techniques to attract customers.

44
Q

How can a business develop customer loyalty?

A
  • Good communication for new products and developments.
  • Excellent customer service.
  • Preferential treatment for returning customers.
  • Customer incentives- e.g money-off vouchers.
45
Q

What are employees as an asset?

A

Businesses are more likely to:
- provide good remuneration packages
- delegate responsibility
- provide job secuirty
- see training as important investment
- develop policies that motivate staff

46
Q

What are employees as a cost?

A

Businesses are more likely to:
- pay workers the minimum
- provide minimum legal sick/ holiday pay
- find ways to maximise output and minimise staff costs
- training seen as uneccessary cost
- centralise decision making

47
Q

What is flexible working (approaches) - ✓ and X?

(Definition)

A

Flexible working is when a business adapts it’s approach to a workforce. Including: multi-skilling employees so that they carry out multiple roles, part-time and temporary contracts, outsourcing (when specialists to complete a particular task), flexible hours and homeworking.

✓- allows a business to respond to short-term chnages in demand.
✓- specilaist jobs can be done by experts who don’t have to permentantly employed.
✓- easier to manage staffing costs.
X- employees may not feel commited- job insecurity.
X- commmunication can be a problem.
X- outsourced work may be lower quality.

48
Q

What’s the difference between dismissal and redundancy?

A

Dismissal is when employees fail to meet the standard required for work. When dismissed unfairly, this can lead to an industrial tribunal.

Redunancy is when there is no work or the position no longer applies. In some cases, employees can be offered voluntary redundancy where they receive a pay-out.

49
Q

What are different types of employee representation?

A
  • Trade unions- organisation establoshed to protect and improve economic and working conditions of workers; focus on negotiations with collective bargaining, focus on pay and conditions.
  • Work councils- forum within business where workers and managers meet to discuss issues relating to conditions, pay and training; builds cooperation with managers, involves employees in key business decisions.
  • Employee committees- group of employees meeting together to focus on specific needs within workforce.
50
Q

What’s the difference between individual and collective bargaining?

A
  • Collective bargaining- negotiated process where trade unions and businesses discuss and agree on pay, working conditions that benefit of trade union members.
  • Individual bargaining- individuals negotiate their own pay and conditions, which might mean that agreements will differ one worker to the next.
51
Q

What is internal recruitment?

A

This is when a role is filled by promoting employees from with the organisation.
✓- cheaper than external recruitment.
✓- managers know their employees so there is less risk.
✓- may require less training.
✓- promotion opportunities are good for staff motivation and retention.

52
Q

What is external recruitment?

A

External recruitment involves bringing new employees in from outside the organisation.
✓- may attract a wider number of applicants.
✓- brings in new skills and ideas
✓- helps increase the capacity within the business.

53
Q

What is training and what are the costs?

A

Training is the process of developing employees by improving their knowledge and skills so they can perform their duties better.

Costs of training: productivity will fall as employees will be away from the workforce, or producing goods and services at a slower pace (often with more paces). Investment in training is a long-term strategy.

54
Q

What are the different types of training?

A
  • Induction- training is part of recruitment and selection process as new employees trained up so they can do their job effectively.
  • On-the-job- ✓-output may continue as learning is through actually doing the job, it may be easier and cheaper to organise. X- it can be disruptive for others and mistakes are possible.
  • Off-the-job- ✓- mistakes reduced because training is not on site, safer, more motivating. X- might be costly, may not always be relevant if not directly linked to the job.
55
Q

What are the roles within a business organisation?

A
  • Directors- employed to run the business. Board of directors take responsibility for variuos functions of the business.
  • Managers- take responsiblity for managing day-to-day decisions.
  • Supervisors- monitor and regulate work of other employees.
  • Team leaders- members of a team who take a leadership role to guide the work of the team and ensure employees are motivated and work toegther efficiently.
56
Q

Define: Chain of command, Span of control, Delegation.

A
  • Chain of command- levels of a hierarchy.
  • Span of control- refers to the number of employees that a manger is directly responsible for.
  • Delegation- passing down authority through the organisation.
57
Q

What is centralisation- ✓?

A

Centralisation- majoirty of decisions are led by senior managers.
✓- works well where standardisation is required.
✓- appropriate for situations where managers have the knowledge and workers are low skilled.
✓- suited to authoritarians leadership.
more suitable in times of crisis.
✓- effective at cost minimisation and economies of scale.

58
Q

What is decentralisation- ✓?

A

Decentralisation- majoirty of decisions are delegated to managers in charge of regions, functions and product categories.
✓- effective where local teams are best placed to make decisions to meet the customer needs.
✓- appropriate where businesses is spread over a wide geographic area and local trends/ needs are important.
✓- effective at reducing workload of senior managers and promoting autonomy and the skills of subordinates.
✓- allows for flexible working conditions and supports job enrichment.

59
Q

What is a tall organisational structure- what’s the impact on business?

A

A tall organisation will have many chains of command and a narrow span of control.
✓- managers have tighter controls
✓- clear promotional route.
X- communication may be poor so slow decison-making due to long chain of command.
X- tighter control may be demotivating.
X- expensive as lots of managers.

60
Q

What is a flat organisational structure- what’s the impact on business?

A

A flat organisation structure has a few chains of command and wider span of control.
✓- communication good.
✓- decisions made quicker.
✓- workers more motivated as less controled by managers.
X- managers may lose control of workforce.
X- can be cheaper as fewer managers.

61
Q

What is a matrix organisational structure- what’s the impact on business?

A

A matrix structure involves workers being organised by a project and business function. Teams carry out a specific project such as the development of a new product.
✓- motivational.
✓- flexible.
X- can be expensive.
X- can be difficult to coordinate.

62
Q

What is Taylor’s scientific management?

A

Theory based on work, study and improving productivity and efficiency of the workforce.
✓- focus on efficiency.
✓- incentivise work with financial rewards.
✓- improve efficiency through standardisation and division of labour.
✓- employees are given elementary training and clear instructions on how to complete a task.
✓- reduced quantity of works as productivity is raised.
X- doesn’t look at wellbeing of workforce.

63
Q

What is Mayo’s human relations theory?

A

Theory based on the fact that employees have social needs and these must fufilled through their work.
✓- informal working groups have positive influence on productivity.
✓- social interactions outside working hours are important.
✓- workers not all motivated by money.
✓- efficiency can be acheived through teamworking.
✓- focus on needs of employees rather than the needs of the organisation.

64
Q

What is Maslow’s hierarchy of needs?

A

The Neo-human relations school focuses on the psychological aspects of motivation and the fact that motivation comes from within an individual. Role of mangers is to unlock this motivation.
- Self-actualisation (morality, creativity), Self-esteem (achievement), Love (family, friends), Safety and security (property, employment), Physiological needs (water, food).
- A person cannot move up the hierarchy without first fulfilling the needs below.

65
Q

What is Herzberg’s two factor theory?

A

Hygiene factors are important in so far as the satisfactory presence of them will not lead to the dissatisfaction of employes. However, hygiene factors don’t motivate employees.
- Factors leading to dissatisfaction: poor pay, poor compensation, lack of job security.
- Factors leading to satsifaction: good leadership pratices, recognition, feedback and support. When these factors are optimal, job satsifaction will be increased.

66
Q

What are financial methods of motivation- ✓ and X?

A
  • Commission (bonus paid on acheiving sales target)- ✓- incentive to increase sales. X- focus taken away from other areas of the job.
  • Piecework (payment based on number of units of output produced)- ✓- incentive to increase output. X- employees may ignore quality.
  • Performance-related pay (PRP- salary/ bonus scheme linked to job-related targets that’s reviewed every 6 months)- ✓- links pay to measurable targets specific to the nature of the job. X- can be expensive if a large proportion of workforce achieve their targets.
  • Profit-sharing (distributing a % of net profit across the workforce)- ✓- reward linked to overall success of the company. X- depends on the profitability of the business.
67
Q

What are non-financial methods of motivation- ✓ and X?

A
  • Delegation, consultation and empowerment- ✓- employees feel involved, have the ability to make their own decisions and are able to influence the business. X- may slow down decision-making and consistency across the business. Some employees may not have the skills/ experience to make important decisions/ contribute their own ideas.
  • Team working- ✓- meets employees’ social needs and encourages a sense of belonging. X- inefficent workers may not be identified as harder to evaluate team situation.
  • Flexible working- ✓- employees can fit their work around their personal life and can help businesses cut back on employment costs. X- difficult to keep control of employees and ensure they are being productive so difficult to build team spirit.
  • Job enrichment- when employees take on harder work with higher level of expertise.
  • Job enlargement- greater variety by adding more tasks and existing roles.
  • Job rotation- transitioning between jobs to ensure they gain exposure to various departments in business.
68
Q

What is autocratic leadership- ✓ and X?

A

Autocratic leadership is when leaders assert absolute authority over subordinates.
✓- focus on getting task done, suitable for implementing a clear vision.
✓- speeds up decision-making process, important in times of crisis.
X- can lead to low levels of motivation if employees don’t feel respected.
X- no opportunity to collect opinions of the workforce that might be valuable.

69
Q

What is democratic leadership- ✓ and X?

A

Democratic leadership is when leaders take into account the opinions of employees in decision-making.
✓- opportunity for employees to ‘buy in’ to the task if they have a say.
✓- allows a manager to collect ideas and opinions from the whole workforce.
X- decision-making can take a long time when done by committee.
X- employees may not see the ‘bigger picture’ and vote for decisions that benefit them.

70
Q

What is Laissez-faire leadership- ✓ and X?

A

Laissez-faire takes a hand-off approach to leadership and gives employees the freedom to make decisions.
✓- allows employees autonomy to make their own decisions.
✓- can lead to higher levels of creativity and motivation among workers.
X- lack of control over the workforce- deadlines and targets might be missed.
X- tasks may not be coordinated very well.

71
Q

What is paternalisitic leadership- ✓ and X?

A

Paternalistic leadership is when leader acts as a pa/matriarch and treats employees as family.
✓- attention given to employee welfare.
✓- employees feel as though they are being looked after.
X- employees given no powers to make decisions so low motivation.
X- leaders may come across as unsure.

72
Q

What is intraprenuership?

A

Intraprenuership refers to employees within a business who have the freedom and opportunity to develop their ideas and use their creativity to innovate.
- These employees add a huge amount of value and often give businesses a competitive advantage.

73
Q

What are the roles of an entrepreneuer?

A
  • Creating and setting up a business.
  • Innovate and invent.
  • Organise resources to set up a business.
  • Make decisions.
  • Take risks.
74
Q

What characteristics and skills entrepreneurs need?

A

Characteristics:
- Self-confidence
- Self-determination
- Self-starter
- Initiative
- Commitment

Skills:
- Organisation
- Financial management
- Managing and communicating with people
- Negotiating

75
Q

What are barriers to entreprenuership?

A
  • Lack of finance
  • Competition from large, established businesses.
  • Aversion to risk
  • Lack of entrprenuerial skill
  • Responsibility of becoming an employer
  • Legal barriers
76
Q

What are incentives for setting up a business?

(Financial and Non-financial)

A

Financial incentives:
- Profit maximisation (generate as much as possible).
- Profit satisfying (generate enough income to live a comfortable lifestyle).

Non-financial incentives:
- Ethical stance (run business with ethical principles).
- Social enterprise (run business for social or environmental cause, not-for-profit)
- Independence and home working (entrepreneurs often want the control and flexibility of running their own businesses)

77
Q

What are examples of business objectives?

A
  • Sales maximisation
  • Market share
  • Cost efficiency
  • Employee welfare
  • Customer welfare
  • Social objectives
78
Q

How is SMART used for business objectives?

A

Specific
Measurable
Acheivable
Realistic
Timebound

79
Q

What are the different forms of business?

A
  • Sole traders- owned by self-employed individuals; ✓- owner keeps all profts. X- unlimited liability, requires wide range of skills and flexibility.
  • Partnerships- business owned by 2-20 individuals; contract of relationship will be set up through a deed of partnership. X- similar issues as sole traders, risk and reward.
  • Franchising- limited company licenses individuals to set up operation in new region. ✓- effective way to grow business, set up fee and royalty payments. X- risk of franchisee ruining brand.
  • Private limited company- owned by shareholders, seperate legal entity. ✓- limited liability, wider access to capital. X- harder to set up than sole trader, accounts public, cannot raise large amounts through selling shares publicly.
  • Public limited company- large publicly owned companies. ✓- stock market flotation, easier to raise finance. X- can lose control of the business, accounts public, greater media pressure.
80
Q

What are financial and non-financial business objectives?

(Profit maximisation?)

A

Financial objectives:
- Survival
- Sales maximisation
- Cost efficiency
- Market share
- Profit maximisation

Non-financial:
- Employee welfare
- Customer satisfaction
- Social objectives
- Brand recognition

81
Q

How do share prices affect a business?

Stock market flotation

A

When share prices rise:
- Managers receive bonuses
- Easier to raise capital
- Consumers with shares feel more confident to spend
- Postive publicity.

When share prices fall:
- Potentially vulnerable to a takeover
- Indication of poor performance
- Harder to raise capital
- Consumers less confident to spend

82
Q

What is opportunity cost?

Non-monetary opportunity cost?

A

Opportunity cost is the benefit lost from the next best alternative.
e.g benefits lost developing a new product instead of increasing production of an existing successful product.

Non-monetary opportunity cost- often not possible to calculate monetary value of decision if choice has impact on brand awareness, employee morale and goodwill.

83
Q

What are trade-offs?

A

A trade off often involves the loss or compromise of another option or factor. e.g improving productivity in a factory may lower the quality of the products.

84
Q

What factors do businesses need to consider when making decisions?

A
  • Investment appraisal
  • Risk vs reward
  • Popularity of decision
  • Balance short-term gains with long-term benefits
  • Comparing benefits of each option
85
Q

What are the difficulties are moving from entreprenur to leader?

A
  • As business grows, there is pressure to change approach to become effective leader.

There is:
- Greater responsibility towards others
- The need to motivate and inspire others
- The need for strategic vision

86
Q

How can an entreprenuer overcome the difficulty of moving from entreprenuer to leader?

A
  • Stress management- reduce stress levels and find time to relax.
  • Education- complete leadership development courses and qualifications).
  • Mentor- gain advice and support from an experienced leader.
  • Delegate and trust- delegate to qualififed employees who can be responsible for running parts of the business.

Business A-level (4 decks)

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