Theme 1 2025 Flashcards
(300 cards)
1
Q
What’s the difference between risk and uncertainty
A
Risk exists because entrepreneurs commit resources that could be lost
Uncertainty exists because businesses operate in ever changing environments and are subject to external factors like legal, economic and social factors
2
Q
What does marketing involve?
A
Understanding customers needs
Understanding the dynamics of the market
Developing successful products
Promoting the business and its products
3
Q
What are mass markets?
A
Target a large proportion of the market with a generic product
Large scale production and investment
Potential for high sales revenue
May compete with many other businesses in the market
Compete on price
4
Q
What is a niche market?
A
Targets a small proportion of the market
Production on a small scale possibly bespoke
Low volume, high profit margin
Few competitors but limited customers
Compete on quality and customisation
5
Q
What is a dynamic market
A
Some markets stay relatively stable for a number of years while others change frequently
It is the needs and characteristics of customers that drive the dynamic changes in a market
6
Q
How can the size of a market be measured?
A
By value or volume
7
Q
How can market share be measured?
A
Sales of a business as a percentage of total sales in the market
8
Q
How can a business adapt in a dynamic market?
A
Being flexible in how they operate
Carrying out market research
Invest in new tech, people and products
Continually improve
9
Q
What are the 5 steps of market research?
A
Define problem or question
Develop plan
Collect data
Analyse data
Interpret and report findings
10
Q
What sorts of questions would a business aim to be answering by doing market research?
A
Who are potential customers
What do customers want
How big is the market
Who are our competitors
What are customers willing to pay
Is there a gap or opportunity in the market
11
Q
What’s primary market research? What are the pros and cons?
A
Specific to the needs of the business
More up to date and reliable
Better for follow ups
Better for qualitative data
More time consuming and costly
Difficult to conduct on a large sample size
12
Q
What are some examples of primary market research?
A
Questionnaires, consumer panels, interviews, focus groups, and customer observations
13
Q
What’s secondary market research? What are the pros and cons?
A
Collating research that already exists that has been collected by another organisation
Easily accessible and a good starting point
Fast and less time consuming
Often better if you want to collect quantitative data
Some data can be free but buying reports can be very expensive
It is not always up to date or specifically tailored to the businesses needs
14
Q
What are some examples of secondary market research?
A
Market research reports
Competitors
Websites
Government statistics
Newspaper articles
15
Q
What does product oriented mean?
A
Focused on production efficiencies and the product itself (features, profit margins and efficiency)
16
Q
What does market oriented mean?
A
Focused on consumer needs
Important to understand customers and developing products that meet their needs
17
Q
In a competitive market is market or product oriented approach better?
A
Market - helps businesses to understand the needs of customers better than their rivals.
18
Q
What are the limitations of market research?
A
Often biased
Small sample size limits reliability
Causality can be hard to identify
Collecting it can be very time consuming
19
Q
What are the uses of market research?
A
Product development
Budgeting
Production forecasting
Sales forecasting
Developing marketing activities
Workforce forecast
Cash flow forecasting
20
Q
What is sampling?
A
Involves selecting a representative group of people from the target population
Quicker and easier than trying to collect research from everyone
The bigger the sample the more representative it is
21
Q
What does correlation mean?
A
Helps businesses to understand the relationship between two factors
22
Q
How can businesses use IT to aid in market research?
A
Collecting data through websites
Social media/networking
Analysing database info
23
Q
What is market segmentation?
A
The process of dividing customers within a market into distinguishable groups based on their characteristics and needs to allow positioning of the business and customers targeting to take place
24
Q
What is the value of market segmentation?
A
Differentiate itself from competitors
Develop and build its brand
Identify and satisfy the needs of a specific group of customers
Research its customers with relevant marketing activities such as advertising
Focus the business activities
Build loyalty towards brand and products
25
26
Why are market maps useful?
They help a business to understand how products/businesses are viewed relative to competitors, based on two relevant characteristics on the x and y axis
They help a business to see if there’s a gap in the market
They compare similarities and differences between businesses
It helps a business gain a better understanding of their competition
Useful as a market research tool to gain an understanding of customer perceptions
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28
What factors may a business consider when trying to decide where to position in the market?
Price
Quality
Branding
Customer perception
29
What is a limitation of market mapping?
It only considers two main variables - markets and customer perceptions are often very complex and may require deeper analysis
30
Why does there sometimes not need to be a gap in the market for a business to be successful?
Businesses can target the same customers as other businesses if there is enough demand or they are able to meet specific customer needs better than their competitors for example by offering more choice or better service
31
What are the limitations of market maps
They are based on two variables only
Perceptions are often very complex and may not fit into this model
A market map is only a planning tool and different stakeholders may have a different opinion of where the business is or should be positioned
32
What are the limitations of market maps
33
What is a competitive advantage?
A set of unique features of a business and its products that are perceived as significant and superior to the competition
34
What is differentiation?
How can this be done?
The process of making a product different from a competitors products
Can be done by:
Developing unique brand characteristics
Creating unique product features
Providing a unique/better customer experience
Building good relationships with customers
Offering a price that undercuts the competition
35
What is head to head competition
Businesses that sell essentially the same product at the same price point with no differentiating factors
36
What are the 3 factors that give competitive advantage?
Innovation (can be protected legally through a patent)
Architecture (relationships with a business that create a synergy and understanding between suppliers, customers and the employees of a business)
Reputation
37
What is a sustainable competitive advantage?
Unique, not easily copied factors that a business has that may take a long time for another business to achieve
38
How can a business add value?
A business adds the cost of production (raw materials, labour etc) adds value and sells the good or service at a higher price than it costs them to produce
39
How can a business add value?
Branding
Better design or features
Customisation
Good customer service
Speed of service and response time to customers
Packaging
Frequent buyer offers
40
When is a business deemed competitive?
Where the value that it adds to its product or service aligns to the price that it charges customers
41
What is demand defined as?
The amount of a product that customers are willing and able to purchase at a given price point
42
How can demand by shown on a graph?
Y = price
X = quantity demanded
The demand curve always slopes downwards becasue the quantity demanded is always lower at a higher price
A demand curve is always a straight line weirdly
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What factors affect demand?
Price of substitutes
Price of complementary products
Changes in consumer incomes
Fashions, tastes and preferences
Advertising and branding
Demographics
External shocks
Seasonality
45
Why does the price of substitutes affect demand?
If an own brand version of a branded item has a lower price this may affect the demand of the branded item
46
Why does the price of complementary products affect demand?
Sometimes products are bought together such as burgers and tomato ketchup. If the price of burgers was to go down then more ketchup might be bought.
47
Why does changes in consumer income affect demand?
Luxury, normal and inferior goods are bought in different quantities depending on wether the economy is in a boom or bust phase
If salaries increase generally luxuries like eating out or going on holiday will increase in demand
48
Why does fashions, tastes and preferences affect demand?
These will increase sales in certain items such as types of cars, clothing and types of foods
49
Why does advertising and branding affect levels of demand?
If there’s a successful advertising campaign or a business has built a strong brand then demand for their products may increase
50
Why may demographics affect demand?
The age of a population or its makeup will influence demand for certain goods
51
Why may external shocks affect demand?
Factors out of control of the business like the arrival of a competitor, the market, the govt or legislation, social climate and environmental factors
52
Why does seasonality affect demand?
This is demand for different types of goods at different times of year
Eg ice cream in summer
53
How is a shift in demand demonstrated on a demand diagram?
Increase in demand will move the line up, decrease in demand will move the line down
54
What is supply?
The amount of a product that suppliers will offer to the market at a given price. The higher the price of a particular good or service the more it will be offered to the market. Supply is directly influenced by how accessible and profitable a market is for suppliers.
55
How can supply be shown on a graph?
The curve will always slope upwards because the quantity supplied will increase as the price rises. In most markets a change in price will alter the point of supply along the curve. In some cases, supply will not change no matter what the price is.
56
How is supply demonstrated on a supply diagram?
Price on the Y axis, quantity on the X
Supply going diagonally upwards from the bottom left
57
What factors increase or decrease supply?
Changes in the cost of production (wages, raw materials, energy, rent and machinery)
External shocks (wars or weather effects)
Introduction of new technology
Indirect taxes
Government subsidies
58
How can supply shifts be drawn?
More quantity = lower price = line goes down
Less quantity = higher price = line goes up
59
How does supply and demand interact?
Where supply and demand meet on a diagram where there is price on the y axis and quantity on the x, the price will be set. If the price were to increase then there would be a surplus because there would not be enough customers willing to buy at this price. If the price was to decrease then there would be a shortage as more people would be willing to buy.
60
How are changes in demand shown on a supply and demand graph?
If demand increases then prices will rise because producers will react to high demand by seeing an opportunity to put prices up as people want the product badly enough they may be willing to pay a higher price. The opposite will happen if there is a fall in demand.
61
How are changes in supply shown on a supply and demand graph?
If supply increases then prices will fall. This is becasue 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.
62
What is PED?
The responsiveness of quantity demanded to a change in price
63
Why is PED important? What does it show?
For some goods a change in price will result in a larger change in the quantity demanded than others.
64
How is elastic or inelastic PED shown on a demand graph?
A steep demand curve represents a relatively price inelastic product. A price elastic product will have a flat demand curve.
65
What does price elastic mean?
Price increase leads to bigger decrease in quantity demanded leading to a fall in revenue.
Price decreased leads to a bigger increase in quantity demanded and revenue will rise.
In other words the demand for a product is very sensitive to its price.
66
What does price inelastic mean?
Price increase leads to a smaller percentage decrease in quality demanded. Revenues rise.
Price decreased leads leads to a smaller percentage increase in quantity demanded and revenues fall.
In other words demand is not as responsive to changes in price
67
What is the PED scale and where are price elastic and inelastic products placed?
>1 is highly price elastic, 1 is price elastic and 0 is price inelastic
68
What should you ignore when calculating PED?
The negative as a change in price for a price inelastic product will have a smaller impact on quantity demanded
69
How does PED impact decision making?
Where demand is price inelastic a business may be able to raise prices to increase revenue becasue there will be a smaller percentage change in the quantity demanded than the percentage change in revenue per unit
Where a product is price elastic the business will have to think carefully about any changes it wants to make to its pricing strategy
70
What factors influence PED?
Number of substitutes/competitors
Relative efforts/costs of switching to another product
Extent to which the product is considered a necessity
Perceived value of the brand
Time - the PED for a product will tend to fall over time as consumers find substitutes
Percentage of income spent on the product
71
What is YED?
Income elasticity of demand - the responsiveness of demand to a change in incomes
72
What is elastic and inelastic demand?
The responsiveness of demand to changes in income
Income elastic demand means that a percentage change in incomes would lead to a proportionate or greater percentage change in quantity demanded. Eg holidays, TVs, cars.
Income inelastic demand is where a percentage change in incomes will lead to a proportionately lower change in the quantity demanded. Eg necessities like food.
73
What are the 3 types of goods?
Normal, inferior, luxury
74
What is a normal good?
Normal goods have a positive YED (> 0), meaning that as income rises, demand for these goods also increases.
Luxury goods (a type of normal good) have a YED > 1, meaning demand increases more than proportionally to income. Example: designer clothes, high-end electronics.
Necessity goods (another type of normal good) have a YED between 0 and 1, meaning demand increases but less than proportionally to income. Example: basic food items, water.
Inferior goods have a negative YED (< 0), meaning that as income rises, demand falls. Example: budget supermarket brands, public transport (as people may switch to taxis or cars).
75
What’s the equation for YED?
income elasticity of demand = % change in quantity demanded / % change in incomes
76
What is the equation for PED?
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
77
What is the impact of YED on decision making?
Businesses that sell goods with high income elasticity will be affected by the cyclical nature of the economy. In a recession demand will fall significantly for products that have a high income elasticity of demand.
78
What factors influence income elasticity of demand?
Wether a product is considered a necessity
Wether the product is considered a luxury
The price relative to people’s incomes
79
What is the design mix and why is it important?
The balance of aesthetics, function and cost
80
How can a business design their products to meet trends?
They can consider current trends and adjust products accordingly. For example products designed for re use or recycling or waste minimisation.
81
What are the challenges with product design?
When designing a product the business needs to carefully balance the 3 elements of the design mix
82
What are the benefits of adapting designs to changes in social trends?
Reducing waste helps businesses cut costs
Reflecting social trends through product design means they are more likely to sell larger quantities
Social trends can be used as a USP to differentiate products and services
Attending to social trends means businesses are more likely to be seen as socially responsible
83
What does a successful promotional campaign achieve?
It will create awareness, understanding and desire for the product
84
What is above the line promotion?
Any form of advertising through the media such as
Radio
Tv
Posters or billboards
Emails
Newspapers and magazines
85
What’s below the line promotion?
All other forms of promotion that are not advertising
Sales promotion (free gifts, loyalty cards, money off)
Public relations (press relations and sponsorships)
Merchandising and packaging
Exhibitions and trade fairs
86
What influences a promotional campaign?
The target audience
Technology
Promotional budget
The message
87
Why does the target audience influence promotion?
The right method needs to be used to reach the right audience: placing an advert in a magazine for a product that matches the demographic of the relationship
88
Why does technology influence the type of promotion used?
Technology can be used to narrow down promotion so it only reaches the right people
89
Why does budget influence promotion?
Which methods are available and the geographical reach of the campaign
90
Why does the message influence choice of promotion?
A public apology might be posted on a companies website whereas a sneak peek for a new product may be better posted on Twitter.
91
How does reach and focus of advertising differ based on the medium?
TV and radio have a wide reach but are unfocused whereas emails and web pop ups may have more of a narrow reach but are more focused
Billboards are unfocused with a narrow reach and consumer magazines have a wide reach and are more focused
92
Why is branding important?
A brand is more than simply a logo or slogan. Although customers will remember and associate a business with its slogan, logo and imagery, a brand also represents the characteristics and personality of a business
93
How can a business build a brand?
Exploiting a USP
Advertising
Sponsorship
Using social media
94
What is the importance of a strong brand?
Adds value to products
Allows for a premium price for be charged
Builds trust
Product might become the natural choice for the novice consumer
Helps a business to position itself in the market relative to other competitors
Makes a product recognisable
95
What are the 3 types of brand?
Manufacturers brand - eg Kellogg corn flakes
Own label brands - brands associated with a retailer eg Sainsbury’s own brand foods
Generic brands - products that do not have a particular brand association but simply use the name of the product eg carrots
96
How can a business use social trends to maximise the value of their business?
Social media - attracting followers
Viral marketing - sharing of images of products and allowing them to reach large audiences online
Emotional Branding - association of businesses products to things that consumers have a strong emotional tie to eg sports teams
97
What influences the price of an item?
Costs
PED
Competition
Product life cycle
Branding
Other elements of the marketing mix
98
What are the 7 pricing strategies?
Price skimming
Dynamic pricing
Penetration pricing
Predatory pricing
Competitive pricing
Psychological pricing
Cost plus pricing
99
What is price skimming?
Used to capitalise on the people willing to pay more to be the first person to have an item: initial price is high so amounts can be skimmed off when it is no longer the newest option
100
What is dynamic pricing?
Applied to products where price can fluctuate with levels of demand such as hotel rooms
101
What is penetration pricing?
Applied to a new product attempting to enter the market. Initial price is low in order to penetrate the market by undercutting competitors. Overtime price may increase as demand grows and reputation builds.
102
What’s competitive pricing?
The business sets prices based on the nearest competitor
103
What’s psychological pricing?
The business bases the price below the next whole number to trick consumers into thinking the price is lower eg £9.99 rather than £10
104
What is predatory pricing?
Where a business sets a low price to drive competitors out the market. Business makes a loss until competition fails.
105
What’s cost plus pricing?
Basing a price based off the unit cost and then adding a percentage as a mark up. Effective as it considers the profit margin the business is willing to accept.
106
Why may a business adjust the price of a product based on where it is in the product life cycle?
Penetration pricing would be appropriate at launch but at a later stage during decline psychological pricing may be more effective
107
What is distribution?
How the product gets to the customer
108
What are some different parties in the distribution network?
Agents or brokers
Retailers
Wholesalers
Direct selling
109
What are some different channels of distribution?
Producer > consumer
Producer > retailer > consumer
Producer > agent > wholesaler > retailer > consumer
110
What can influence distribution?
Scope and scale (big brands sell in lots of places)
Nature of the product (food or plants are not easy to ship)
Control over promotion and pricing (business may use its own platform)
Expectations of customers (do they expect to be able to access this product in a lot of places?)
111
What are social trends in distribution?
Growth in direct ordering through the internet with many manufacturers using couriers to deliver products directly
There is also a big increase in providers selling on demand services like deliveroo and uber
112
What is the value to businesses if digital marketing and e-commerce?
Allows small businesses to target a global market
Allows businesses to gather customer information easily
Opportunities for personalisation and involving customers in the design of products
Builds relationships through a more personal service by tracking buying habits
Targeting specific segments is much easier even on an individual basis
113
What are the benefits for a business of online distribution?
Do not have to meet the costs and issues of a physical store
Lower start up costs make it easier
Transactions can take place securely online
Can take sales 24/7
Can offer goods to a much wider market
114
What are the benefits of online distribution for customers?
Customers benefit from lower prices as online retailers will often pass on lower costs
Can buy 24/7
Comparison between stores is much easier
Usually wider choice available
Customers can see reviews before purchasing
115
What are some social trends that could cause a business to adjust their prices?
Personalised pricing (using tech to target customers with a personalised price)
Subscription pricing (charging customers a monthly fee to use a service)
Price comparison sites (sites to compare prices in the market for the same or similar goods or services)
Auction sites (bidding with a sense of urgency)
116
What is the product life cycle
The stages a product goes through from introduction, through to growth and maturity and into decline
> may potentially experience an extension strategy
117
What happens in the introduction phase of the product life cycle?
Price may be set low to initiate sales and heavy promotion could be used to create awareness
118
What happens in the growth phase of the product life cycle?
Price may increase with popularity as new varieties and distribution methods are introduced.
Businesses may keep supply up with demand
119
What happens in the maturity phase of the product life cycle?
Consider cutting price to maintain demand. Promotion slows as customers are aware of products. Introduction of new customers stops and focus is put on retention
120
What happens in the decline phase of the product life cycle?
Price cuts to maintain demand and any varieties are streamlined
121
What is an extension strategy?
Where a product is relaunched and given a new lease of life to renew demand.
122
Do all products have the same life cycle?
No - some products may grow and decline very fast whereas others may not decline and will stay in maturity for a long time
123
What is the value (pros and cons) of product portfolio analysis?
Helps businesses consider their full product range
Decide where funds are allocated
Can be used to predict future sales and therefore plan production and distribution
Products and markets are complicated and do not necessarily follow a pattern
Does not provide clear solutions for a business
PPA simplifies what can be a complex issue
124
What is the Boston Matrix?
A strategic matrix to demonstrate to a business where their products are in the market. It compares market growth rate and market share, sorting products into high and low.
High market share, high growth: stars
> leading brand in the market requiring effective distribution
Low market share, high growth: question mark
> fast growing market but not an established product which normally requires heavy investment to develop and ensure success
Low market growth, high market share: cash cow
> generate high revenue with very little promotion
Low market growth, low market share:
> need heavy investment to revitalise or should be discontinued
125
What are the 4 categories of products in the Boston matrix?
High market share, high growth: stars
> leading brand in the market requiring effective distribution
Low market share, high growth: question mark
> fast growing market but not an established product which normally requires heavy investment to develop and ensure success
Low market growth, high market share: cash cow
> generate high revenue with very little promotion
Low market growth, low market share:
> need heavy investment to revitalise or should be discontinued
126
Describe the Boston matrix.
High market share, high growth: stars
> leading brand in the market requiring effective distribution
Low market share, high growth: question mark
> fast growing market but not an established product which normally requires heavy investment to develop and ensure success
Low market growth, high market share: cash cow
> generate high revenue with very little promotion
Low market growth, low market share:
> need heavy investment to revitalise or should be discontinued
127
What is a marketing strategy?
A set of plans that aim to achieve a specific marketing objective.
128
What are some examples of marketing objectives?
Becoming a market leader, building customer loyalty, improving brand recognition, increasing market share
129
What is the marketing mix?
The 4 Ps
Product
Price
Promotion
Place
130
What are the 4Ps
Product
Price
Promotion
Place
131
How can the marketing mix be adapted for mass markets?
Product - competitors will be very generous and businesses should find a way to differentiate
Price - competitor pricing and managing costs are key as many products will have a similar price
Promotion - heavy advertising and promotion are used to build brand image
Place - multiple channels will be used to distribute and sell goods
132
How can the marketing mix be adapted for niche markets?
Product - differences in the product will be quite significant so the business needs to communicate these to customers to show why there’s are superior
Price - niche marketers have more flexibility to offer premium pricing strategies due to the unique value they can add
Promotion - tends to be targeted using specialist media and direct methods
Place - more likely to sell directly to customers or use a small number of carefully selected channels
133
What is outbound marketing?
Any strategy that involves pushing a message out to customers. This can include above the line and below the line methods
134
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What is inbound marketing?
Includes any marketing technique that attracts potential customers to a website when they are looking for a particular service or product
136
What are hybrid strategies
Involves a combination of outbound and inbound. Outbound strategies are seen as more short term and inbound strategies take around 6 months to start garnering interest.
137
How can a business develop customer loyalty?
Excellent customer service
Preferential treatment for returning customers
Often easier to keep customers and encourage them to repeat purchase than it is to attract new customers
Good communication to keep customers informed of new developments
Customer incentives
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What are the two approaches to staffing?
Seeing employees as an asset vs as a cost
140
What does seeing employees as an asset mean? What benefits would this likely provide?
Understanding how valuable employees are
Good remuneration packages
Reasonable holiday and sick pay
Invest in working conditions
Good job security
Invest in training
Delegate responsibility
Take care in developing policies to motivate staff
141
What does seeing employees as a cost mean? What implications would this likely have?
Pay workers the minimum
Provide minimum holiday and sick pay
Provide basic working conditions
Find ways to maximise output
See training as an unnecessary cost
Centralise decision making
Give little thought to employee motivation
142
What does flexible working mean and what are some approaches?
Approaches other than employing workers on a permanent fixed term contract
Multi shilling employees so that they can carry out multiple roles
Outsourcing and getting other businesses to complete tasks like payroll
Part time and temporary contracts
Flexible hours and home working
143
What are the advantages of flexible working?
Allows businesses to respond to short term changes in demand
Specific jobs can be done by specialists who do not have to be permanently employed
Easier to manage staffing costs
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What are the disadvantages of flexible working?
Employees may not feel as committed to the company if they aren’t there permanently
Communication can be problematic
Outsourced work may be of a lower quality
145
What’s the difference between dismissal and redundancy?
Employees may be dismissed from work for failing to meet the required standard or through misconduct. Employees may also be dismissed unfairly which can result in a tribunal.
Redundancy applies when there is no work, not enough work or the position no longer applies. Sometimes employees will be offered voluntary redundancy and they will receive a payout.
146
Why are good employee-employer relations important?
Can be achieved through effective communication which can lead to improved performance of an organisation and an enhanced reputation as an employer
147
What are the 3 types of employee representation?
Trade unions
Work councils
Employee committees
148
What are trade unions? What do they do?
An organisation established to protect and improve the economic working conditions of working for example the national union of teachers
Negotiate through collective bargaining
Focus on pay and conditions
Represent me gets at industrial tribunals and give workers advice on employment issues
> Prominent in public sector
> decline of these in the past 20 years
149
What are work councils? What do they do?
A forum within a business where workers and managers meet to discuss issues relating to conditions, pay and training
Members elected from the workforce by the workforce
Builds cooperation with managers
Allows the workforce to be heard without trade unions representation
Involves employees in key business decisions
150
What are employee committees? What do they do?
A group of employees meeting together to focus on specific issues within the workforce. This may not be recognised or attended by managers which differentiates it from work councils.
Informal
Set up by employees
Typically focusing on issues like employee social events, safety and working conditions
Employee committees may influence decisions made at work councils
151
What are the two methods of bargaining? How do they work?
Collective bargaining- a negotiated process where trade unions and businesses discuss and agree on pay, working conditions and other conditions for the benefit of trade union members. Workers have more power and influence when operating as a group.
Individual bargaining - may be more appropriate in small businesses. Individuals negative their own pay and conditions. They may mean agreements will differ from worker to the next.
152
What sort of things might influence employee representation?
The nature of the work carried out by employees
The history of the business
Employment legislation
The leadership and management style
The corporate objectives of the business and their mission statement
153
What is recruitment and selection?
The process of attracting, identifying and selecting the best workers for a role. The effectiveness of this process will help a business recruit people who can provide a strategic advantage for the company
154
What does human resource flow mean?
The movement of employees throughout an organisation.
155
What are the three key aspects of human resource flow?
Human resource inflow
Internal human flow
Human resource outflow
156
What is the recruitment process? What are the general pros and cons?
The process of finding and employing workers. It can be expensive but worth it if it attracts employees who will add value to the organisation. This cost involves advertising the post and interviewing and training a new employee
157
What does head hunting mean?
Finding an employee rather than them coming to you
> generally managers or people with specialist skills
158
What are the benefits of training?
Can improve employee skills adding value and competitiveness
159
What does redeployment mean?
Moving employees to new roles, teams or functions within the organisation to maximise productivity, efficiency and capacity and meet employee needs relating to promotion and new skills
160
What are the steps to the process of employing someone?
1. Decision made as to wether recruitment is necessary
2. Job description and person specification are prepared
3. Plans are made on how and when to advertise
4. Applicants are shortlisted
5. References are requested
6. Candidates are invited for interviews and selection tests
7. The sucessful candidate is offered the job and signs the contract of employment
161
What is internal recruitment and why is it good?
When a role is filled by promoting employees from within the organisation
Cheaper than external recruitment
Managers know their employees so there is less risk
May require less training
Promotion opportunities are good for motivation and retention
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What is external recruitment and why is it good?
Involves bringing employees in from outside of the organisation. Potential employees may be found using job adverts, employment agencies, government training schemes or head hunting
May attract a wider pool of applicants
Brings in new skills and ideas
Helps increase the capacity within the business
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What is training?
The process of developing employees by improving their knowledge and skills so they can performs their duties better.
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Why might training be a trade off?
It can be expensive meaning businesses have to choose wether to invest in that or something else
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What’s induction training?
Part of the recruitment and selection process as new employees need to be trained effectively so they can do their job
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What’s on the job training? What are the pros and cons?
When an employee is taught as rgey work
Output may continue because learning if through doing the actual job
It may be easier and cheaper to organise
It can be disruptive for others and mistakes are possible
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What’s off the job training and what are the pros and cons?
Being taught at a facility
Mistakes are reduced because training is not on site
Safer
More motivating
Might be costly
May not always be relevant if not directly linked to the job
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When is training required
New employees join the company
New technology or equipment is introduced
New health and safety legislation
New working practices
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Why may a business not want to train their employees?
It can be very costly and productivity will fall as employees will be away from the workplace or producing goods slower and potentially with more mistakes.
Investment in training requires the business to look long term and have good retention of staff.
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How is authority organised in a hierarchical structure
Authority is the power in terms of decision making that a worker has. The higher up the organisation have greater authority. Ultimate authority is with the CEO.
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What do directors do?
Employed to run the business. The managing director may have ultimate authority but there will be a group of directors known as the board of directors who will take responsibility for various functions of the business.
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What do managers do?
Take responsibility for managing and controlling an aspect of the business and make day to day decisions. They may be responsible for a department and report to the directors
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What do supervisors do?
Monitor and regulate work of other employees. They may have delegated responsibility from a manager
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What are 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 effectively together
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What are professionals?
Staff with high levels of qualifications and experience
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What are operatives?
Skilled workers whose are involved in the production of a product or the delivery of a service. Operatives carry out the instructions of managers and supervisors
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What are general staff?
Roles carried out by workers with non specific skills that require limited skill experience and training
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What does organisational design determine?
How a business responds to external factors
How people within the business relate to one another and how the company adapts to change
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What are some key factors in organisational design
Authority
Delegation
Levels of hierarchy
Span of control
Decision making process
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What is chain of command?
The levels in hierarchy
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Why would an organisation be referred to as tall?
An organisation with many levels
> levels are naturally increased as the hierarchy grows
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What is span of control?
Refers to the number of employees that a manager is directly responsible for
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What is delegation?
The process of passing authority down through the organisation
Can be used to lighten the workload of key personnel as the organisation grows and can be a key aspect of job design as it leads to job enrichment
Delegation may not be suitable in some situations if staff don’t have the skills
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What is centralisation?
A decision making process whereby the majority of decisions are led by senior managers
Works well where standardisation is required
Appropriate for situations where mangers have the knowledge and work are low skilled
Suitable for authoritarian leadership styles
More suitable in times of crisis
Effective at cost minimisation and achieving economies of scale
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What is decentralisation?
A decision making process whereby the majority of decisions are delegated to managers in charge of functions, regions and product categories
Effective where local teams are better placed to meet customer needs
Appropriate where a business is spear over a wide geographical area
Reduces workload of senior managers and promotes autonomy and the skills of subordinates
Allows for flexible working conditions and supports job enrichment
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What are the features of a tall organisation?
Less delegation and empowerment
More opportunities for promotion
More control of employees
Communication takes longer
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What are the features of flat organisations?
Less control and fewer opportunities for promotion
Faster decision making
Broader job roles
More flexible
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What is a matrix structure?
Involves workers being organised by a project and business function. In a matrix structure teams are formed to carry out a specific project such as the development of a new product or the opening of a few branch.
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What are the key benefits of a matrix structure?
Benefit through flexibility and the ability to bring specialists together for a common cause
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What’s the impact of a tall structure on businesses?
Managers have tighter controls
Clear promotion route
Slow communication
Slow decision making
Tight controls can be demotivating
Expensive because of lots of managers
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What’s the impact of a flat structure on businesses?
Good communication
Quick decision making
Workers more motivated because less controlled by managers
Managers may lose control of workforce
Can be cheaper because of fewer managers
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What’s the impact of a matrix structure on businesses?
Motivational
Flexible
Can be expensive
difficult to coordinate
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What does motivation mean?
The willingness to work and achieve a target or goal
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What is employee engagement?
The contribution an employee makes towards their work, including intellectual effort and positive emotions
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What category of management would employees driven by the need to meet social needs fall into?
The human relations school
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What category of management would employees driven by financial incentives fall into?
The scientific management school
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Who is Frederick Taylor and what did he believe?
> theory bases on work study and improving productivity and efficiency of the work force
Focused on efficiency and improved competitiveness
Believed people are motivated solely by money
Incentivised work with financial reward
Improve efficiency by standardisation and the division of labour
Employees are given elementary training and clear instructions on how to complete a task
> the application of Taylor’s principles reduces the need for as many workers as productivity is raised
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Who is Elton mayo and what did he believe?
> theory based on the fact that employees have social needs and these must be fulfilled through their work
Recognised informal working groups have a positive influence on productivity
Workers are not simple motivated but financial incentive
Social interactions outside of working hours are important
Efficiency can be achieved through teams and team working
Focus on the needs of the employees rather than the needs of the organisation
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What did Maslow believe?
People are driven to acheive personal needs at 5 different levels
1. Physiological needs
2. Safety and security
3. Love and belonging
4. Self esteem
5. Self actualisation
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What is Maslow hierarchy of needs?
Physiological needs
Safety and security
Love and belonging
Self esteem
Self actualisation
A person cannot move up the hierarchy without fulfilling the need below. Businesses can motivate workers by giving them the opportunity to satisfy these needs at work
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What are physiological needs in terms of Maslow hierarchy of needs and where does this fall in the hierarchy?
Breathing, food, water, shelter, clothing and sleep
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What are safety and security needs in terms of Maslow hierarchy of needs and where does this fall in the hierarchy?
Health, employment, property, family and social stability
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What are love and belonging needs in terms of Maslow hierarchy of needs and where does this fall in the hierarchy?
Friendship, family, intimacy, sense of connection
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What are self esteem needs in terms of Maslow hierarchy of needs and where does this fall in the hierarchy?
Confidence, achievement, respect of others, the need to be a unique individual
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What are self actualisation needs in terms of Maslow hierarchy of needs and where does this fall in the hierarchy?
Morality, creativity, spontaneity, acceptance, experience, purpose, meaning and inner potential
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What does Maslow consider the role of managers to be?
The neo human relations school focuses on the physiological aspects of motivation and the fact that motivation comes from within an individual. The role of mangers is to unlock this motivation.
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Who is Frederick Herzberg and what did he identify?
Identified that hygiene factors are important to not dissatisfy employees but they do not on their own motivate employees, only those specifically identified as motivators
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What factors did herzberg identify as leading to dissatisfaction?
Poor pay
Poor compensation
Poor working conditions
Lack of promotions
Poor benefits offering
Lack of job security
> when these factors are optimal job dissatisfaction will be eliminated but these factors alone do not increase job satisfaction
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What factors did herzberg identify as leasing to satisfaction?
Good leadership practices
Good mangers relationship
Clear and direct support
Feedback
Personal growth
Advancement
Recognition
> when these factors are optional job satisfaction will be increased
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How valuable is Taylor to motivational theory?
Criticised as being against the wellbeing of the workforce but his focus on productivity and efficiency is still extremely important today
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How valuable is mayo to motivational theory?
Any job design and reward package should consider the social dimension of work and ensure human interaction is designed to create the greatest benefit for the workers and the business
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How valuable is Maslow to motivational theory?
Brings together other theories to encourage managers to provide the workforce with opportunities to fulfill their needs. It considers both financial and non-financial incentives of work.
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How valuable is herzberg to motivational theory?
Considers the dissatisfaction of the workforce and what employers must do to prevent this. Employers must secure the hygiene factors before they will be able to develop means of motivating employees
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How is motivational theory useful to managers?
Provides a useful framework that managers can use to review and evaluate organisational practices, job design, pay and organisational structure and the way they communicate with their employees
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What is commission? Is it a financial or non-financial motivator? Pros and cons?
Financial
A bonus paid based on achieving a sales target
Appropriate for sales jobs
Incentive to increase the sales revenue of the business
Focus taken away from other areas of the job such as customer service
Little attention to aspects of the job that don’t directly affect commission earned
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What is piecework? Is it a financial or non-financial motivator? Pros and cons?
Financial
Payment based on the number of units of output produced
Appropriate for production jobs
Incentive to increase output
Employees may ignore factors like quality
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What is performance related pay? Is it a financial or non-financial motivator? Pros and cons?
Financial
A salary or bonus scheme linked to job related targets. Targets and performance may be reviewed every 6 months or annually.
Links pay to measurable targets specific to the job
Encourages review of employee performance
Can be expensive if a large proportion of the workforce reaches their targets
Difficult to ensure PRP is fair across the organisation
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What is profit sharing/bonus schemes? Is it a financial or non-financial motivator? Pros and cons?
Financial
Distributing a percentage of net profit across the workforce
Reward linked to the overall success of the company
Depends on the profitability of the business
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What does Maslow say about financial motivation?
Financial reward will satisfy basic needs and may boost self esteem but will not satisfy higher order needs
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What does herzberg say about financial motivation?
Financial incentives are a hygeine factors and if satisfactory will only prevent dissatisfaction
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What does Taylor say about financial motivation?
The rational man is driven by financial reward
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What does mayo say about financial motivation?
Financial incentives are irrelevant if an employees social needs are not met
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What is delegation, consultation and empowerment? Is it a financial or non-financial motivator? Pros and cons?
Non-financial
Giving employees autonomy, authority and the power to influence key business decisions
Employees feel involved, have the ability to make their own decisions and are able to influence the business
May slow down decision making and consistency across the business. Some employees may not have the skills or experience to make important decisions or contribute their own ideas
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What is team working? Is it a financial or non-financial motivator? Pros and cons?
Non financial
Organising the workforce into teams to benefit from the social aspects of motivation
Meets employees social needs and encourages a sense of belonging. Helps employees develop a connection to the organisation through their colleagues
Individual performance is harder to identify in a team situation and ineffective workers may not be identified
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What is flexible working? Is it a financial or non-financial motivator? Pros and cons?
Non-financial
Adopting flexible xo tracts and approaches that do not require employees to work in the office 9-5
Employees can fit their work around their personal life. Employees have autonomy to decide how and when they work. Can help the business to cut back on employment costs.
Difficult to keep control of employees and ensure they are being productive. Difficult to build a team spirit if employees are not together all the time
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What is job rotation/enrichment and enlargement? Is it a financial or non-financial motivator? Pros and cons?
Non financial
Encouraging employees to work across a range of roles, develop understanding of different areas of the business and develop new skills
Employees are motivated through increased variety and personal development
Can be disruptive and reduce productivity in the short term as employees develop their skills and learn new roles.
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What does Maslow say about non financial methods of motivation?
Linked to achieving higher order needs of belonging and love, self esteem and self actualisation
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What does herzberg say about non-financial motivation?
Key to motivating the workforce
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What does Taylor say about non-financial motivators?
Reduce productivity and create inefficiencies within the workforce
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What does mayo say about non financial motivators?
Help employees achieve their social needs
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What might be considered when choosing a method of motivation?
Costs
Skill level of employees (more skilled employees may require more enrichment)
Nature of the organisation and the type of work (creative industries may lean towards empowerment)
Skill level of managers
Attitudes
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What is it important to consider when deciding what form of motivation to use?
Employees will not be fully motivated by one thing alone - it’s important to have a balance of financial and non-financial methods
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How can you tell if your workforce is highly motivated?
Customer service
Labour productivity
Employee engagement
Product quality
Good relationships with managers
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How can you tell if your workforce ISNT highly motivated?
Absenteeism
Labour turnover
Labour cost per unit
Recruitment costs
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What’s the difference between managers and leaders?
Leaders will drive businesses by setting a vision for the future and putting strategies in place to get there. They change the status quo, divise strategy, inspire, empower, think laterally and act proactively.
Managers build consistency, implement strategies, instruct, control and think logically whilst also being reactive.
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What qualities do leaders have?
Traits like vision, confidence, good communication, decisiveness and motivation
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What are the 4 leadership styles?
Autocratic (authoritarian)
Democratic
Laissez faire
Paternalistic
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What are the pros and cons of autocratic or authoritarian leadership?
Focused on getting the task done
High levels of control which is suitable for an unskilled workforce
Speeds up decision making process (important in times of crisis)
Suitable for implementing a clear vision held by the leader
Can lead to low levels of motivation if employees do not feel respected or valued
No opportunity for employees to be involved in decision making
No opportunity to collect opinions of the workforce that might be valuable
Employees may not feel as though they have a stake in the business
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What is autocratic or authoritarian leadership?
• The leader makes decisions without consulting employees.
• Communication is one-way (top-down), and employees are expected to follow orders.
• Works well in environments requiring quick decision-making or strict control (e.g., military, emergency services).
• Can lead to high efficiency but may also cause low motivation if employees feel undervalued.
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What is democratic leadership?
• The leader involves employees in decision-making and encourages participation.
• Communication is two-way, allowing feedback and discussion.
• Employees feel more valued and motivated, which can increase productivity and creativity.
• However, decision-making can be slower due to consultations.
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What’s laissez faire leadership?
• The leader provides little guidance and gives employees full autonomy.
• Employees are trusted to make their own decisions.
• Works best when employees are highly skilled and self-motivated.
• However, it can lead to confusion and lack of direction if not managed properly.
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What’s paternalistic leadership?
• The leader acts like a “parent” figure, making decisions in the best interest of employees.
• Similar to autocratic leadership but considers employees’ well-being.
• Communication is mostly one-way, but with some employee feedback.
• Can create loyalty and high morale but may also lead to dependency on the leader.
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What are the cons of democratic leadership?
Develops a team spirit
Oppurtunity for employees to buy into the task if they have a say
Allows a manager to collect ideas and opinions from the whole workforce
Decision making can take a long time when done by a committee
Employees may not see the bigger picture and could vote for decisions that benefit them
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What are the pros and cons of laissez faire leadership?
Allows employees autonomy to make their own decisions
Can lead to higher levels of creativity and motivation among workers
Lack of control over the workforce meaning deadlines and targets may be missed
Tasks may not be coordinated very well
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What are the pros and cons of paternalistic leadership styles?
Attention given to employee welfare
Employees feel as tho they are being looked after
Employees are given no powers to make decisions
Low levels of motivation
Employees have no stake in the business
Leader may come across as unsure
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What is an entrepreneur?
Someone who is willing to take risks to set up and grow their own business
They see opportunities to make money and to meet the wants and needs of society which allows them to solve problems and create wealth in the economy
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What do entrepreneurs do specifically?
Innovate and invent
Take risks
Organise (pulling together people, capital and tech)
Make decisions
248
Where might an entrepreneurs ideas come from?
Lifestyle choices
Spotting a gap in the market
Skills
Business experience
Personal experience or hobby’s
249
Why is there risk and reward in setting up a business?
1 in 3 businesses fail within the first year but there can be significant personal and financial rewards
250
What are the stages to setting up a business?
The idea
Research
Planning
Financing
Location
Resources
The launch
251
What must an entrepreneur do in regard to running their business?
They must lead and coordinate all the functions of the business
252
What does an entrepreneur need to do to run, expand and develop their business?
Marketing
Production
Manage people
Purchasing
Administration
Financial management
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What is intrapreneurship?
Employees within a business who have the freedom and opportunity to develop their ideas and use their creativity to innovate.
254
What do intrapreneurial employees do?
Solve problems
Create new and exciting products
Keep big businesses moving forward
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Why are intrapreneurial employees valuable?
They will often give a business competitive advantage which is important to motivate and give employees the opportunity to develop these traits
256
How do entrepreneurs deal with risk and uncertainty?
Carrying out detailed research
Producing detailed plans
Analysing external influences
Developing contingency plans
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What are some barriers to success for entrepreneurs?
Lack of finance
Competition from large and established businesses
Aversion to risk
Lack of ideas
Lack of entrepreneurial skills
Responsibility of becoming an employer
Legal barriers and red tape
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What are the characteristics of an entrepreneur?
Self confident
Self determined
self starter
Initiative
Commitment
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What skills do entrepreneurs have?
Organisation
Financial management
Managing and communicating with people
Negotiating
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What are some incentives for setting up your own business? What two categories can these be sorted into?
Financial motives
- Profit maximisation
- profit satisfying (to be able to live a comfortable lifestyle)
Non financial motives
- ethical stance
- social enterprise (social or environmental cause eg a non profit)
- independence and home working
261
What are business objectives?
Medium to long term plans that are established to coordinate the business and act as targets.
262
What are corporate objectives?
Objectives set by the owners or directors of a business - these will influence the functional objectives set at department level
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What are business objectives?
Provide quantifiable steps to acheive aims
Clarify direction of the business
Measure success against targets
Motivate employees to achieve
Reward employees
264
What are SMART targets?
Specific
Measurable
Achievable
Realistic
Time bound
265
What are the two types of business objectives
Financial and non financial
266
What are financial business objectives?
Survival
Profitability
Growth
Market share
Shareholder value
Sales maximisation
Cost efficiency
267
What are non financial business objectives?
Personal satisfaction
Brand recognition
Sustainability
Customer satisfaction
Employee welfare
Social objectives
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Why may different businesses have different goals?
Some objectives are more appropriate for smaller businesses like survival
269
What are some influences generally on business objectives?
Size
Sector
Market
Ownership
Owner
270
What is the importance of profit maximisation?
Profit is one of the main incentives of running a business. The wealth created through profit allows the owners of a business to reinvest the money into new projects
Profit is also important becasue it can secure the long term success of a business.
Profits can also be reinvested to help a business grow
271
272
What determines the legal form of a business?
The size
273
What is a sole trader?
Owned by individual self employed individuals
Easy to start up with no registration required
Required a wide range of skills and flexibility
The owner can be their own boss but the hours are likely to be long
Owner keeps all profits
Unlimited liability
274
What is a partnership?
Joint ownership of running a business
A contract of relationship will be set up through a deed of partnership
Common in professions like solicitors and veterinary surgeons
Similar issues faced by sole traders but with greater shared responsibility, risk and reward
275
What’s a private limited company?
Must go through the process of incorporation
Limited liability
Has a higher status than a sole trader
Will have wide access to capital
276
What’s a public limited company?
Can raise capital through selling shares to the public
Size is measured by market capitalisation
Has the ability to takeover other businesses
Can lose control of the business
277
Why is becoming a PLC difficult?
1. Choose the Right Market
• Main Market (London Stock Exchange) – for large, established companies.
• Alternative Investment Market (AIM) – for smaller or growing companies, with more flexible rules.
2. Financial Requirements
• Main Market:
• Must have at least £700,000 in market value of publicly held shares.
• Must provide audited financial accounts for at least three years.
• Must demonstrate financial stability and profitability (in most cases).
• AIM:
• No minimum market capitalisation.
• No trading history required – more suitable for new or fast-growing firms.
3. Legal and Regulatory Compliance
• Must convert to a public limited company (plc).
• Must comply with corporate governance standards, such as:
• Having a board of directors with non-executive members.
• Regular reporting and transparency.
4. Appoint Key Advisors
• Investment bank (sponsor or underwriter) – helps with pricing and selling shares.
• Lawyers, accountants, and public relations advisors.
5. Prepare a Prospectus
• A detailed legal document given to potential investors, including:
• Financial history.
• Business model.
• Risks involved.
• Management structure.
• How funds raised will be used.
6. Approval and Listing
• The company submits the application and prospectus to the Financial Conduct Authority (FCA) for approval.
• Once approved, shares are listed and can be traded on the stock exchange.
278
What is limited liability?
Where the liability of the owners of detached from the company. Shareholders can lose their investment in the event of financial difficulties but their personal belongings are safe unlike with unlimited liability
279
What is incorporation?
Involves separation into two legal entities: the shareholders and the company
The company will be registered with companies house and relevant legal documents produced such as a memorandum of association and articles of association
280
What is a franchise?
A limited company that licenses the rights for individuals or groups to set up an identical operation in a new region. Franchising allows a business to expand without the owners taking direct responsibility for each branch/store/division
281
What are the pros of being a franchisor?
Effective way to grow the business
Franchisor gets setup fee and royalty payments
Risk of franchisee damaging brand if not run effectively
282
What are the pros and cons of being a franchisee?
Receive a business in a box with plans, product, brand and marketing
Provided with training and support
Expensive setup fees and little freedom to change business format
Royalty payments and a share of sales go back to franchisor
283
What are the pros and cons of being a private limited company LTD?
shareholders have limited liability
Easier to raise capital through internal shareholders
Owners may pay less tax than if they operate as a sole trader
Harder to set up
Accounts published and public ally availible
Can’t raise large amounts of money through selling shares publicly
284
What are the pros and cons of being a public limited company PLC?
huge amounts of money can be made through stock market flotation
Finance is easier to raise through issuing shares
Size makes it easier to gain economies of scale
Accounts openly available to public
Greater external pressures from the media and pressure groups
Board of directors if accountable to external shareholders
285
What are some other forms of business?
Social enterprise - not for profit organisations including cooperatives, mutual organisations and charities. These may pay lower tax rates
Lifestyle business - a business run in order to sustain a particular lifestyle for its owners. Often run by a single person and linked to an interest, skill or enthusiasm.
Online business - could be run as any legal form, but providing products and services solely through the internet: e-commerce. Internet based businesses are the fastest growing business sector
286
What is stock market flotation?
Occurs when a company goes public and becomes a PLC. Means that the company’s shares are offered on sale to the general public
> this can have a significant impact on how the company operates
287
What steps does a business have to go through before they can be listed on the stock market?
Issue a prospectus advertising the company to the public
Get the prospectus reviewed bt lawyers
Provide a minimum of £50 000 of share capital upfront
If successful a certificate to sell shares will be issued
The initial public offering (better known as the IPO) goes live and the business can start trading
288
Why might a business not want to be listed on the stock market?
It’s very expensive and time consuming
289
How does a business share prices change?
Share prices are affected by the company’s performance and the business environment that it operates in
> a company’s share price could fall even if it is performing well if there are fears for its future
290
What could happen when share prices rise?
Managers receive a bonus
The company finds it easier to raise capital
Consumers with shares feel more confident to spend
The business may receive positive publicity
291
What could happen when share prices fall?
The company may become vulnerable to a takeover
Price fall gives an indication of poor performance
The company finds it harder to raise capital
Consumers with shares feel less confident to spend
292
What is an opportunity cost?
The benefit lost from the next best alternative
293
What are some examples of opportunity coats?
The benefits lost from launching a new advertising campaign instead of investing in employee training
The benefits lost from developing a new product instead of increasing production of an existing successful product
The benefits lost from purchasing a new vehicle rather than upgrading IT facilities
294
What is a non-monetary opportunity cost?
Opportunity costs often cannot be calculated financially
This is because many decisions will not impact finances but rather brand awareness, employee morale or good will
295
What is a trade off?
Will often involve the loss of comprise of another option or factor
> improving productivity in a factory may lower the quality of the products being made
When making decisions a business will consider the trade offs it makes when making strategic decisions for example selling high volumes of low quality products rather than low volumes of high quality products
296
What factors might a business weigh up when making a decision?
Investment appraisal
Advantages and disadvantages of each option based on info available and research
Short term gains vs long term benefits
The probability of success
Gauging support
Risk vs reward
297
What are the demands of being a leader?
Increased pressure to change their approach and effectively lead an organisation
Growth and movement towards leadership demanding certain characteristics and approaches
298
What are the difficulties of being a leader?
Sharing ownership and control of the business
Stress
Qualities such as confidence, compassion and interpersonal skills
Seeing themsleves as a leader
299
How can an entrepreneur overcome difficulties involved with becoming a leader?
Stress management
Education
Mentor
Delegation and trust
300
Why may a business choose to stay small
To avoid the issues of growing too fast or the difficulties of becoming a leader
