Types of Organisations Flashcards
(78 cards)
1
Q
What is a busniess
A
Organisation managed by 1 or more persons. Aims to meet people´s wants and needs.
2
Q
Goods
A
Things you can see and touch
3
Q
Durable
A
You can use it again and again
Computers and Cars
4
Q
Non-Durable
A
Normally we just use 1 time
5
Q
Services
A
Things which are done for use, the buyers do not take them physically home.
6
Q
Needs
A
Essential for survival, things we cannot live without ( food, water )
7
Q
Wants
A
Things we would like to want but are not essential for survival ( holidays and cars )
8
Q
MULTINATIONAL companies
A
Aim to make a profit
9
Q
Goverment owned enterprises
A
Social purposes ( help )
10
Q
Human
A
The employees
11
Q
Phyiscal
A
Materials ( Land, space)
12
Q
Financial
A
Cash / Money
13
Q
Enterprice
A
Entrepreneurship
14
Q
Role of the HR department
A
Good management of the staff
Staff training
Motivating employees
Good working relationships
15
Q
Role of the Marketing Department
A
Satisfy the costumers in order to make a profit
Carrying out research of what the costumer wants
Suitable prices
Effective promotion
16
Q
Role of Operations Department
A
Manufacturing the products
Manage stock levels
Look for ways to produce more efficiently
17
Q
Primary sector
A
Exploiting natural resources from earth ( farming, oil excavation)
18
Q
Secondary
A
raw materials from the primary sector are processed by manufacturing
19
Q
Tertiary
A
Provides a service
20
Q
Quaternary
A
IT technology
21
Q
Intrapreneur
A
Works for others.
22
Q
Why do people start their own businesses?
A
Independence- Be their own boss
Rewards- Those who risk their own capital
Necessity
Challenge
Interest
Sharing an idea
23
Q
Problems a new business may face
A
Lack of name recognition
24
Q
Private sector
A
Driven by profit
financed by private money from shareholders and bank loans
Maximize profit
ZARA, PANDORA
25
Public Sector
Owned by the government. Provides goods and services to benefit the community
Public libraries, education
26
Third sector
Not- For- Profit
Runned by voluntary and trustees
27
Private advantages
Focus on profit so cost savings are made.
More innovation
28
Private disadvantages
Damaging the environment and the use of non-renewable resources
29
Public advantages
essential services are provided to people in need either for free or low cost
Sustain employment
30
Public disadvantage
Limited resources
Higher costs
No growth due to limited funds
31
Profit- Based Commerical organizations
Sole traders, Partnerships, Public Limited companies, Private Limited companies
32
PROFIT
= TOTAL SALES- TOTAL COSTS
33
Total revenues are known as sales.
Total costs are all of the costs incurred by that business in the same period
34
SOLE TRADER
A business that is owned and controlled by 1 person.
Most small local businesses are sole traders when starting a business.
Most people begin with a limited budget and this is the simplest form of business to organize,
Example ( Local cafe, corner store, hairdressers )
35
Unlimited liability ( Sole traders, Partnerships )
PERSONALLY RESPONSIBLE
36
Limited companies
Are owned by shareholders
Raise finance through issuing shares either privately or through the stock market
37
Owners are known as shareholders
Shares represent small segments of the business.
38
Most shareholders own a very small portion of the company
therefore have very little say in the decision-making.
39
DIVIDENDS
SUM OF MONEY PAID QUATERNLY by a company to its shareholders.
40
PRIVATE LIMITED COMPANY
a small company whose shares are owned privately
NOT AVAILABLE IN THE STOCK MARKET
Finance is raised through privately inviting others to become shareholders and all shareholders must agree on new owners
Shares are usually held by friends and family ( Family Business)
41
SHAREHOLDERS
Limited liability
Busniess continues if owners dies
42
Disadvantages Shareholders
Firms cannot sell shares to the public, restricting finance raised
Financial information can be inspected by the competitors
May take time to find a buyer for shares
43
PUBLIC LIMITED COMPANIES
A large business whose shares are available for purchase ( Chipotle, Amazon )
Shares can be bought and sold on the stock exchange
44
SHAREHOLDER
Owners of the business who have bought shares on the stock exchange
45
ADVANTAGES
A huge amount of money can be raised
Production costs lower as large PLC may gain economies of scale (a proportionate saving in costs gained by an increased level of production.)
Shares can be given to employees to motivate them
46
DISADVANTAGES
Take a huge amount of time and money
No control over who buys the shares
47
COOPERATIVES
A cooperative is an association of persons (organization) that is owned and controlled by the people to meet their common economic, social, and/or cultural needs and aspirations through a jointly-owned and democratically controlled business
48
MICRO-FINANCIERS
Low-income economies
Provide small amounts of finance to those who typically do not get access to it
Low-income individuals, families in rural communities
Money is lent with specified conditions for use and scheduled payments
49
PUBLIC-PRIVATE PARTNERSHIPS
Created between the private and the public sector
Construction of a facility with a social aim ( health care or education)
The public sector gives finance
Private gives the skills
50
COMMON FEATURES
Collaboration between the business and the local community
Greater democracy in the business
51
ADVANTAGES PUBLIC-PRIVATE PARTNERSHIPS
There is a strong communal identity and employees are highly motivated to work with wider stakeholders to work together toward a common purpose
52
DISADVANTAGES PPP
Time-consuming
53
Vision statement:
To be the most successful and respected car company in America
54
Mission statement:
To attract and attain customers with high-valued products and services and the most satisfying ownership experience in America
55
STRATEGIC DECISIONS
Long term decisions
Made by owners
56
TACTICAL DECISIONS
Medium-term to short-term decisions
Made by middle management
Outcome more predictable
57
OPERATIONAL DECISIONS
Day to day
Made by junior managers
Lower level decisions
58
Benefits of SWOT analysis
Enables a better strategic planning
Enables a company to mitigate risks
No rash decisions are made as time is taken to gather information and analyze it
Identifies both internal and external factors
It is a proactive approach, not reactive
The logical, structured process
59
Ansoff Matrix
Market development
Market penetration
Diversification
Product development
60
Market Penetration
Business grows through its increasing its market share, and selling more existing products in the same market.
Safest option
The growth potential of the market
61
Market Development
Expanding the market by looking for new markets of for new market segments
Riskier
62
Diversification
Introducing a new product to a new market
New product has not been tested
63
Product development
Tries to create new products and services targeted at its existing market to achieve growth
64
STAKEHOLDERS
Individuals or groups who have a direct interest in a business because the actions of the business will affect them directly
Interest in the business
Directly financial
65
INTERNAL STAKEHOLDERS
Are individuals or groups within a business and have a direct monetary stake in its succes ( owners and workers)
66
EXTERNAL STAKEHOLDERS
Are groups outside a business are have a less direct stake in the business but have an interest in how or what the business does? ( customers)
67
Shareholders
interested in maximized profits so they will receive a high money
A high value of their shares
68
STEEPLE
Social, Technological, Environmental, Ethical, Political, Legal and Economic
69
Boom period
an upturn in the economy as GDP continues to rise. Businesses produce more goods and services. The economy is working at full, or near full capacity.
70
LABOUR TURNOVER
Measures the rate at which employees are leaving an organization. It is measured by:
Number of employees leaving in 1 year * 100 / Average number of people employed
71
STAFF APPRAISAL
SUMMATIVE= AGREED ON TARGETS BY BOTH
FORMATIVE= RECIPROCAL FEEDBACK
360= FROM EVERYONE
SELF-APRRASIAL= PERSONAL
72
CHAIN OF COMMAND
Shows that eBay instructions and authority are passed down vertically.
The system is used to ensure that each individual receives instructions for a. particular task from only one supervisor.
Decisions making SLOW
73
SPAN OF CONTROL
The number of employees a manager has responsibility for
A span of control depends on:
The capability of subordinates
The projects being undertaken
Organizational procedures
74
DELAYERING
Reducing staff levels though cutting to the level of managing
“ Flattening to the structure”
75
BUREAUCRACY
Decisions made by officials
76
Centralized Structures
All control and decision-making lies with senior management in the office
Procedures are standardizes thought the entire organization
77
Autocratic Style
Leaders tell each employee what to do and how it should be done
Feedback or suggestions are not encouraged or used
Decisions making is quick
78
Theories of Motivation
Frederick Taylor= Achieve efficiency and discipline
Paid workers according to productivity
Abraham Maslow= a theory of motivation states that five categories of human needs dictate an individual's behavior.
Frederick Herzberg= employee satisfaction has two dimensions: “hygiene” and motivation.
John Adams = REWARDS
Daniel Pink= basically motivated.
