Theme 3 Flashcards
(164 cards)
1
Q
What are corporate objective
A
What the business aims to achieve
2
Q
What is a mission statement
A
Brief statement written by business describing its purpose and objectives
3
Q
2 reasons why businesses form mission statements
A
1) To make committment to customers - shows what the can expect business to strive for
2) Brings workforce together with a shared prupose - forms good and strong corporate culture
4
Q
What does SMART stand for in corporate objective
A
Specific
Measurable
Agreed
Realistic
Time specific
5
Q
Focuses of coroprate objective
A
- Innovation
- Profitability
- Sustainability
- Growth
- Social Responsibility
- Shareholder Value
6
Q
Factors affecting corporate objectives
A
- Actions of competitors
- Global prices
- Technological changes
- Social changes
- Economic conditions
7
Q
Why must corporate objectives and mission statements be reqularly reveiwed?
A
To fit with direction of business and its stakeholders
8
Q
What are departmental objectives
A
Aims within a department of a business
9
Q
What is the Ansoff Matrix
A
- Helps decide what market to operate in and what products to sell within that market
- Has four categories:
1) Market penetration
2) Market development
3) Product development
4) Diverification
10
Q
4 categories in Ansoff Matrix
A
1) Market penetration
2) Market development
3) Product development
4) Diversification
11
Q
What is Market Penetration
Ansoff Matrix
A
- Purpose to achieve growth in existing markets with existing products
- Boost sales of current products in their current markets
12
Q
Approaches to market penetration
Ansoff Matrix
A
- Increase promotional activities
- Build brand image
- Focus on increasing repeat business
- Incentives to customers
13
Q
The + and - of market penetration
Ansoff Matrix
A
+ Low risk
+ Product and market are familiar
+ Limited investment required
- Possibly limited growth potential
- Business may be vulnerable if theres a lack of innovation
14
Q
What is Product Development
Ansoff Matrix
A
- Developing new products in existing markets
15
Q
Possible approaches to product development
Ansoff Matrix
A
- Use market research to see areas for improvement and innovation
- Use funds in research and development
- Manage product range
16
Q
The + and - of product development
A
+ familiar with customers
+ builds on current products
+ innovates products
+ responds to customer needs
- takes time so can be expensive
- new innovation may take away from existing products
17
Q
What is Market Development
Ansoff Matrix
A
- Take existing products into new markets
- Entering geographically new market
18
Q
Approaches to market development
Ansoff Matrix
A
- Use penetration pricing to enter new market
- Make new channels of distribution to reach new customers, e.g. internationally
- Takeover is a business already operating in the market
19
Q
The + and - of makret development
A
+ Potential for large growth
+ No need for expensive product development
- Liminited understanding of new customer needs
- Competing against already estbalished businesses
20
Q
What is Diversification?
Ansoff Matrix
A
- Offer new products in a new market
- Moves away from reliance on existing markets and products
21
Q
Approaches to Diversification
Ansoff Matrix
A
- Achieved by external growth, e.g. mergers or takeovers
- High economies of scale
22
Q
The + and - of Diversitifcation
Ansoff Matrix
A
+ Spreads business risk as engaging in different markets
+ Can use core comptetencies and apply tonew context
- Very highy risk
- No preutation or expertise in the market
-
23
Q
What is Portfolio Analysis
A
- Categorise where all products and services in the business fit within the strategic plans
24
Q
Aims of portfolio analysis
A
- Categorise with specific characteristics
25
How are products assessed in a portfolio analysis
- Current and projected sales
- Current and projected costs
- Level of competition
- Unique characterisitcd and strengths
- Risk that may affect performance
26
How are products assessed in a portfolio analysis
- Current and projected sales
- Current and projected costs
- Level of competition
- Unique characterisitcd and strengths
- Risk that may affect performance
27
What is Competitive Advantage?
- Where a business makes unique value for its customers that is better tha that offered by competitors
28
What 3 areas of practice are used in competitive advantage
- Innovation
- Architecture
- Reputation
29
Innovation
| Competitive Adavantage
- Ability business has to amke new and unique processes and products
- Can sometimes be legally protected through patents
30
Architecture
| Competitive Advantage
- Is the relationships within a business
- Creates understanding between suppiers, customers and employees
31
Architecture
| Competitive Advantage
- Is the relationships within a business
- Creates understanding between suppiers, customers and employees
32
Reputation
| Competitive Advantage
- Brandvalues are hard to replicate
- May take years to develop
33
Factors to consider when choosing a corporate strategy
- Excpeted cost
- Anticipated return
- Stakeholders
- External environent
- Core competitiveness
- Risk aversion
34
What is a strategy
- A long-term plan/approach to get business to achieve its objectives
- Involve major committment
35
What are tactics
- Day-to-day decisions take by middle managers
- Taken to achieve strategic direction of the business
36
What does SWOT stand for?
- Strength
- Weaknesses
- Opportunities
- Threats
37
The + and - of SWOT analysis
+ Low cost and simlpe
+ Can be combined with other ways of decisionmaking, e.g. PESTLE
- Depends on opinions of managers, so is subjective
- Does not offer clear solutions
- Classification may depend on perspective
38
Strengths
| SWOT Analysis
Business develop a startegy around these
- Having strong brand imagine
- Highly skilled workforce
- Loyal customer base
- Innovative marketing department
39
Weaknesses
| SWOT Analysis
Business try to not use strategies involving these
- Poor cash flow
- Low motivation
- Outdates tools/machinery
- Out of date website
40
Opportunities
| SWOT Analysis
Business attempt to exploit these
- Fast growing market
- Decrease in cost of raw materials
- Fall in exchange rate
- Collapse of major rival
41
Opportunities
| SWOT Analysis
Business attempt to exploit these
- Fast growing market
- Decrease in cost of raw materials
- Fall in exchange rate
- Collapse of major rival
42
Threats
| SWOT Analysis
Business try to proctect themselves against these
- New competition
- Looming recession
- Change in social attitudes
- New legislation
43
What can be used to analyse external influence?
PESTLE
44
What does PESTLE stand for?
| Impact of External Influences
Political
Economic
Social
Technological
Legal
Environmental
45
Political
| PESTLE - Impact of External Influences
- Political decisions have direct impact on international trade, market regulation and national infrastructure
46
Political
| PESTLE - Impact of--- External Influences
- Political decisions have direct impact on international trade, market regulation and national infrastructure
47
Examples of political factors
| PESTLE - Impact of External Influences
- Members joining or leaving EU
- Changes in gov
- Pressure groups, may convince gov to increase tax on something etc
48
Economic
| PESTLE - Impact of External Influences
- The general state of the economy
- Recission etc may affect trading conditions
49
Examples of economic facotrs
| PESTLE - Impact of External Influences
- Falling employment
- Strengthening exchange rates
- Interest rate fluctuation
- Recessions
- Stable prices creating certainty in markets
50
Social
| PESTLE - Impact of External Influences
- Changing demands
- Way soceity spends money
- Cultural changes tend to impact this
51
Examples of social factors
| PESTLE - Impact of External Influences
- Increased number of uni goers
- Ageing populations
- Increased/decreased migration
- Becoming morehealth conscious
52
Technological
| PESTLE - Impact of External Influences
- Developments in tech create new opportunity for new porducts and services
- Busiesses can be left behind if notkeeping up-to-date with tech advances
53
Examples of technological factors
| PESTLE - Impact of External Influences
- Changes in tech can shorten product lifecycle
- Development in social media increases interaction between businesses and customers
54
Legal
| PESTLE - Impact of External Influences
- Gov provide framework of how businesses operate
- Legislation protects vulenrable groups
55
Examples of legal factors
| PESTLE - Impact of External Influences
- EU legislation can affect tax laws
- Calls ot ban things being advertised
- Food industry under pressure to reduce sugar and salt used
- Sugar tax
56
Environmental
| PESTLE - Impact of External Influences
- Gov tried to get businesses to pay for costs like pollution
- Society increasingly concerned with environment
- Being environmentally friendly may add extra costs
- Pressure on businesses to become more environmentally friendly
57
Examples of environmental factors
| PESTLE - Impact of External Influences
- People more inclined to buy environmentally friendly goods
- Provides business opportunity to make environmentally friendly things
58
Changing Competitive Environment
| Impact of External Influences
- Businesses need to respond and adapt strategies to these
- New entrants
- New products
- Consolidation
59
New Entrants
| Impact of External Influences
- Market becomes more competitive
- E.g. growth uin e-commerce has forced many busiesses to do this too
60
New Products
| Impact of External Influences
- Businesses need continuous innovation
- May have to adapt exisitng prodcuts
- May have to lower prices
61
Consolidation
| Impact of External Influences
- Number of businesses in market fall, but some may grow
- Can cause market to shift vastly
- May be able to lower costs
- May respond by organissing mergers or takeovers
- May look to develop products or cut costs
62
What is Porter's 5 Forces?
| Impact of External Influences
- Factors that affect how businesses operate and compeete within a market
63
What are Porters's 5 Forces?
| Impact of External Influences
- The bargaining power of suppliers
- The bargaining power of buyers
- Threat of new entrants
- Threat of substitutes
- Rivalry among existing firms
64
Rivalry among exisitng firms
| Porter's 5 Forces - Impact of External Influences
- Will determine prices and profits
- Businesses tend to compete by making new products etc
- Can consider lowering prices and/or cost of production
65
Bargaining power of suppliers
| Porter's 5 Forces - Impact of External Influences
- Suppliers can negotiate prices and terms
- More power suppliers have, the higher the price they can charge
66
Supplier power is high if...
| Porter's 5 Forces - Impact of External Influences
- Few suppliers
- They're supplying essential products
- Low avaliability of substitutes
67
Bargaining power of buyers
| Porter's 5 Forces - Impact of External Influences
- Buyers want lowest price from suppliers as possible
- Negotiate terms and prices with suppliers
- Can agree long-term contract with suppliers
68
Buyer power is high if...
| Porter's 5 Forces - Impact of External Influences
- Porudcts are price sensitive
- They buyin large quantities regularly
- It's easy to find subsititues
69
Threat of new entrants
| Porter's 5 Forces - Impact of External Influences
- If a businesses profit rises a lot, may attract new businesses into market who will charge lower prices
- Can apply patent and copyright to prevent rivalry
- Should try create strong brands and customer loyalty
70
Threat of substitutes
| Porter's 5 Forces - Impact of External Influences
- The more sustitutes there are, the more competition
- Businesses with little substitutes are likely to charge higher prices
- May change with social chanegs etc
71
Threat of substitutes are high if...
| Porter's 5 Forces - Impact of External Influences
- Alternative products exist
- Consumers can easily switch to substitutes
- Alternatvie prices fall
72
Rivalry among existing businesses
| Porter's 5 Forces - Impact of External Influences
-
73
Interal ways of business growth
| Growth
- Market penetration
- Product development
- Market research
74
External ways of business growth
| Growth
- Mergers
- Takeover
- Joint venture
75
Economies of Scale
| Growth
- The reduction of average costs as sales increase
76
Internal benefits businesses gain from as it grows
| Growth
- Bulk buying
- Investing in best technology
- Can employ specialists
- Can recieve better rate of interest or terms of payment
77
External benefits businesses gain from growth
| Growth
- Grows the whole industry
- Build-up of a skilled work force
78
Diseconomies of Scale
| Growth
- Where unit costs rise as business expands
79
Problems businesses may face as they grow
| Growth
- Communication problems
- Control
- Flexibility
- Motivation
80
What is overtrading
- When a business grows to fast and it overstretches their financial resources
- Can cause business failure
81
Strategies to deal with getting too big
| Growth
- Redundancies
- Closing branches
- Reallocating business resources
- Cancelling expansion plans
- Outsourcing
- Discontinuing products
82
Reasons for mergers and takeover
| Mergers and Takeovers
- Quick and easy way to expand
- Buying a business is often cheaper than growing one
- Globalisation
83
What is a merger
| Mergers and Takeovers
- When two or more businesses join together and operate as one
84
What is a takeover
| Mergers and Takeovers
- When a business buys another one
85
What is a takeover
| Mergers and Takeovers
- When a business buys another one
86
What is horizontal intergration
| Mergers and Takeovers
- When two firms in same line and stage of business join together
87
What is backward vertical intergration
| Mergers and Takeovers
- Joining with a business in the previous stage of production
88
What is forward vertical intergration
| Mergers and Takeovers
- Joining with a business in the enxt stage of production
89
Problems with rapid growth
| Mergers and Takeovers
- Drain on resources
- Coping with change
- Allienation of customers
- Loss of control
- Shortage of resources
90
Organic Growth
| Organic Growth
- Business grows using own resorces
- Internal
91
Inorganic Growth
| Organic Growth
- Growth by two or more businesses joining together to form one
- Mergers or takeovers
- External
92
Methods of Organic Growth
| Organic Growth
- New products
- New markets
- New customers
- New business model
- Franchising
93
Advantages of Organic Growth
| Organic Growth
- May be less risky as avoids complications that might occur when joining with other buisnesses
- May be cheapers
- Busniess retains more control
- Financial position may be better protected
- Less likely to encounter diesconomies of scale
94
Disadvantages of Organic Growth
| Organic Growth
- May be slow, potentially dissatisfying some stakeholders
- May prevent business from 'tapping into' resources owned by other businesses
- Slow growing may mean business gets 'left behind' in the market
- May take time for economies of scaleto be exploited
- Not approriate for rapidly growing markets
95
Reasons for Staying Small
| Reasons for Staying Small
- Lower costs
- Owner's preference
- Convenience as a USP
- Contorl and efficiency
- Flexibility
- Allows to provide personal service
96
Product differentiation and USP
| Reasons for Staying Small
- Small firms look to offer unique things
- Small firm has potential to offer specialist things, adding value to it
97
Flexibility in Responding to Customer Needs
| Reasons for Staying Small
- Decisions can be made quickly
- Operations can be adapted
- Small firms can often be first to adapt to competititve environment and customer needs/wants
98
Customer Service
| Reasons for Staying Small
- Owners and workers can build relationships with smaller number of customers
- Can provide personal service
99
E-commerce
| Reasons for Staying Small
- If a website is attractive and professionally presented, may be difficult to tell which companies are small and which are large
- Low barriers to entry, as can set us with little cost
100
What is time series analysis
| Quantitative Sales Forcesating
- A method that allows a business to predict future levels from past figures
- Helps see if theres an upwards, downwards or constant trend in sales figures
101
Components to identify in a time series anaylsis
| Time Series Analysis - Quantitative Sales Forecasting
- Trend
- Seasonal fluctuations
- Cyclical fluctuations
- Random fluctuations
102
Calculating moving average
| Quantitative Sales Forecasting
- An average over a period of time
- Can be a month, quater, year etc
103
What is Centring
| Quantitative Sales Forecasting
- If there is no center time period (e.g. 4 years), use centring
1) Add first 4 together
2) Add last 4 together
3) Add two numbers above together
4) Answer is eight-year moving total
104
Limitations of Quantitative Sales Forcecasting
| Quantitative Sales Forecasting
- Relativley short-term (1-2 years0
- Dependent on quality of makret research
- Unlikely to take into account external shocks, e.g. recession
105
Predicting line of best fit
| Quantitative Sales Forecasting
- Draw line of best fit to predict future sales after using time series analysis to make trend line
106
Seasonal variations
| Quantitative Sales Forecasting
- Used to provide more accurate prediciton than just plotting trend line
- Variation from tredn line calculated and averaged over a number of years
- Prediction then more accurate than using a smoothed out line
107
Casual Modelling
| Quantitative Sales Forecasting
- Looks at relationship between data
- Can be done using scatter diagrams, seeing if there is correlation between data
- See if there is positive, negative or no correlation between variables
108
What is correlation coefficient
| Quantitative Sales Forecasting
- Measures the relationship between two vairables
109
What is Investment Appraisal
| Investment Appraisal
- Evaluation of an investment to determine whether it's likely to be worthwile
110
What are the 3 financial methods in investment appraisal
| Investment Appraisal
- Payback
- Average Rate of Return (ARR)
- Net Present Value (NPV)
111
What is Payback?
| Investment Appraisal
- Calculates length of time it takes for an investment to regain original costs
- Useful for firms needing quick return
112
What is Average Rate of Return (ARR)
| Investment Appraisal
- Measures net return each year as a % of capital cost of investment
- Profits may fluctuate a lot over time of project, which may not be taken into account
113
Calculation for Avarge Rate of Return (ARR)
| Investment Appraisal
Net return (profit) per annum/ Capital outlay (costs) **x 100**
114
What is Net Present Value
| Investment Appraisal
- Calculates present value of future income from an investment project, minus the costs
- e.g. £1 not worth as much in 2 year as it is now
- Good for considering opportunity costs
115
Financial aspects of investment criteria
| Investment Appraisal
- The rate of interest
- Return of Capital Employed; is there a minimum expected % return on the investment
- Costs; can the business finance the investment
116
What are Decision Trees
| Decision Trees
- Shows all possible outcomes of a decision
-
117
Benefits of Decision Trees
| Decision Trees
- Adds financial data to decisions
- Clarifies possible courses of action
- Makes manangers account for risk
118
Drawbacks of Decision Trees
| Decision Trees
- Porbabilities are often estimated
- Doesn't consdier qualitative info
- Doesn't take into account dynamic nature of business
- Porcess can be time-consuming and uses up business resources
119
Influences on decision-making
| Decision Trees
- Objectives and missions of business
- The level of risk involved
- External environment, e.g. competition
- Resources constraints, can only use resuorces avaliable
120
Features of Decision Trees
| Decision Trees
1) Decision points = represented by squares, decision maker chooses between certain coruses of action
2) Outcomes = points where there are different possible outcomes, repersented by circles called chance nodes
3) Probability of chance = should add up to 1, goes below line
4) Expected monetary values = the financial outcome of a decision, based on predicted profit or loss of an outcome
120
Features of Decision Trees
| Decision Trees
1) Decision points = represented by squares, decision maker chooses between certain coruses of action
2) Outcomes = points where there are different possible outcomes, repersented by circles called chance nodes
3) Probability of chance = should add up to 1, goes below line
4) Expected monetary values = the financial outcome of a decision, based on predicted profit or loss of an outcome
121
Influences on Business Decision in Large Corporations
| Corporate Influence
- Corporate Influence = whether decisions are based on evidence or veiws of decision makers
- Corporate Culture = can influence style of leadership, creativtiy and trust within business
- Stakeholder Perspective = pressure to satisfy stakeholders
- Business Ethics = businesses with more ethical stance less likely to take action that could cause harm to environment
122
What do businesses in short-termism do
| Corporate Influence
- Maximise short-term profit
- Invest less in R&D
- Return profits to shareholders
- Pursue external growth
123
What do businesses in long-termism do
| Corporate Influence
- Invest in R&D
- Focus on profit quality
- Take ethical stance on decision-making
- Pursue interest of stakeholders
124
What is Evidence Based Decision Making
| Corporate Influence
- Based on things like financial forecasts
- Use break even analysis or investment appraisal
- **+** Helps reduce risk
- **-**Data can be hard or expensive to collect (especially for small businesses)
125
What is subjective decision making
| Corporate Influence
- Based on experience and 'gut feeling'
- No supporting data
- **+** intuition may come from experienced managers
- **-** will be risk as not based on data
126
What is Corporate Culture
| Corporate Culture
- Includes traditions, rituals, attitudes and values
- Make up how business is run and how people interact with each other
127
Benefits of Strong Corporate Culture
| Corporate Culture
- A sense of identity and belonging
- Sense of togetherness
- Improved comittment from employees
- Motivation
- Reinforcing business values
128
Things that contribute to culture of a business
| Corporate Culture
- Physical environment
- Ways of doing things
- Good or bad things that happened in the apst
- Way business recognise sucess and reward it
- Leaders who influence others
129
Problems with changing organisational structure
| Corporate Culture
- Long process
- Culture is deep set so not easy to change
130
Reasons for changing organisational culture
| Corporate Culture
- A new leader
- Poor perforamnce
- Corporate objectives
- Customer needs
131
What is a stakeholder
| Stakeholders versus Shareholders
- People with an interest in activities of a business
132
Examples of stakeholders
| Stakeholders versus Shareholders
- Employees
- Managers
- Shareholders
- Suppliers
- Customers
- Local Community
133
What is a shareholder
| Stakeholders versus Shareholders
- Someone with atleast one share in a business
- Have purely financial interest in business
134
Examples of Ethical Business Practices
| Ethics
- Treating workers fairly
- Ethical sourcing
- Caring for community
- Paying suppliers fair price
- Trading with ethical corporations
135
Ethical Decision-Making
| Ethics
- Environment = ehtical businesses are sustainable and dont want to dmaage environment
- Corruption = ethical businesses act in fair, honest and open ways
- Workers = ethical businesses give good working-conditions, pay and well-being to employess
- Technology = some new things are controversial, e.g. nuclear power generation and electronic cigarettes
136
What is Corporate Social Responsibility
| Corporate Social Responsibility
- Belief that business should be repsonsible for its effects on environment
137
Examples of CSR
| Corporate Social Responsibility
- How well does it treat its staff?
- How does it perform on human rights issues?
- How ethical are the businesses activites?
- What was social impact of businesses products?
- How much waste has it produced?
138
What are 2 key documents businesses are required to make
| Interpretation of Financial Statements
- Statement of comprehensive income
- Statement of financial position (balance sheet)
139
What is a statement of comphreprehensive income
| Interpretation of Financial Statements
- Shows the income and expenditure of a business for a period of time
- Calculates profit made by the business
140
What key things does a statement of comprehensive income show?
| Interpretation of Financial Statements
- Revenue
- Cost of sales
- Gross profit
- Selling expenses
- Net profit (profit for the year)
141
What can we see from a statement of comprehensive income?
| Interpretation of Financial Statements
- Changes in sales revenue
- Changes in cost of sales
- How well business is managing operating costs
- The profitability of the business
- Unusual incomes/expenses during the time period
142
What is a statement of finanical position (balance sheet)?
| Interpretation of Financial Statements
- Shows the assets and liabilties of a business
143
What we can see from a statement of financial position (balance sheet)?
| Interpretation of Financial Statements
- The liquididty of a business
- The current assets the business holds
- Short-term liabilties that the business will need to pay within the year
- the long-term debts of the business
144
What is total equity
- Total assets - total liabilities
145
What is ratio analysis
| Ratio Analysis
- Numerical approach investigating accounts by comparing two related figures
146
What does a gearing ratio calculate
| Ratio Analysis
- The proportion of a businesses equity that is borrowed
147
How is Gearing Ratio calculated?
| Ratio Analysis
(non-current assets/total equity + non-current liabilities) **x100**
- Calculated as a %
148
Interpreting Gearing Ratio
| Ratio Analysis
- More than 50% is highly geared
- Highly geared busness is vulnerable to increasing interest rates
149
What is Return on Capital Employed (ROCE)?
| Ratio Analysis
- The prfoit of a business as a % of the total amount of money used to generate it
150
How is ROCE Calculated?
| Ratio Analysis
(Operating profit/Capital employed) **x100**
151
Positives of ratio analysis
| Ratio Analysis
- Info can be used as benchmark data
- Shows greater insight of financial accounts
- Allows business to compare trends over time
- Can be used to assess the performance of certain areas of the business, e.g. HR
152
Negatives of ratio analysis
| Ratio Analysis
- Doesn't take into account qualittative issues, e.g. brand image or customerservice performance
- Doesn't take into account long-term decisions
- Doesn't take into account economic conditions or perofmance of other businesses
153
What does labour productivity calculate?
| Human Resources
- Output per worker over a given period of time
154
How is Labour Productivity Calculated?
| Human Resources
(Total output (per time period)/Number of employees at work) **x100**
155
Interpreting labour productivity
| Human Resources
- Does not take into account technology used in production process
- Doesn't take into account wage rate
156
What does labour turnover calculate
| Human Resources
- The proportion of staff leaving a business over a period of time
157
How is labour turnover calculated
| Human Resources
(Number of staff leaving (over period of time)/Average number of staff) **x100**
- Given as a %
158
Interpreting labour turnover
- High turnover indicates unhappy employees
- Some industries exepect high turnover rates due to seaosnal contracts
159
What does absenteeism calculate
| Human Resources
- Compares total number of poeple absent to number of employees
160
What does absenteeism calculate
| Human Resources
- Compares total number of poeple absent to number of employees
161
How is absenteeism calculated
| Human Resources
(Number of staff absent (over period of time)/Total employees) **x100**
- Given as a %
162
Interpreting absenteeism
| Human Resources
- High level of absenteeism increases business costs as productivity falls and costs to cover employees rise
- High level indiactes demotivation or tension in workforce
- Business may compare health and safety records with absenteeism data
163
Strategies to increase productivity and reduce turnover and absenteeism
| Human Resources
- Give employees financial rewards for sucesses
- Allow employees to buy shares, this will motivate them to work more as they want the buisness to earn as much as they can so they get better outcome of it
- Give extra training
- Delegate authority
- Give feedback
- Have good communication
- Offer flexible working hours
- Ensure employees are well resourced
