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UB Flashcards

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1
Q

Name the 4 sectors of industry

A

Primary
Secondary
Tertiary
Quartenaey

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2
Q

What is the secondary sector

A

Firms involved in manufacturing and construction

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3
Q

What is the primary sector

A

Firms that extract natural resources

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4
Q

What is the tertiary sector

A

Firms that provide a service rather than goods

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5
Q

What is the quartenaey sector

A

Consists of firm providing info and knowledge based services

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6
Q

What are the 3 sectors of economy

A

Private public third

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7
Q

Private sector

A

Firms that aim to max sales and profits

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8
Q

What are public sector

A

Government owned orgs, aim to provide a service to society

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9
Q

What is the third sector

A

Orgs that provide goods or servuces to benefit others

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10
Q

Who owns and controls LTD

A

Limited liabiliy, shares only sold to fam n friends
Owned by shareholders
Controlled by board of directors

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11
Q

2 pros and 3 cons of LTD

A

Shareholders have limited liability
Ownership not lost to outsiders

Profits must be shared with shareholders
Complicated legal process to set up
Limited sources of finance as shares not sold publically

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12
Q

Who owns and controls PLC

A

Owned by shareholders
Controlled by board of directors
Limited liability and shares sold publically

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13
Q

3 pros of PLC

A

Shareholders have limited liability
Large amounts of finance can be raised from selling shares publically
Easy to borrow from bank as PLC rep normally good

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14
Q

4 cons of PLC

A

Dividends shared with many shareholders
Can be subject to finnancial takeover
Annual stocks must be published which costs firm
Set up costly and complicated

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15
Q

What is a franchise

A

Where’s a firm allows a business to pay to own a branch of their already well know existing firm

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16
Q

What’s a franchiser and franchisee

A

McDonalds
The set up people

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17
Q

2 pros and cons of franchising to franchiser

A

Low risk method of growth as franchisee invests majority of capital
Receives percentage of all franchisee profits

Rep can be tarmished by poor branch
Only receive a share of profits rather than all if they owned the branch

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18
Q

3 pros and cons of franchising to franchisee

A

Existing customer base
Industry training provided by franchiser
Benefits from nationwide advertisements by franchiser

Franchiser decides on products layouts uniform
Hugh initial start up fees
Franchiser takes percentage of profits

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19
Q

What is a multinational

A

Firm that operates in more than one country

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20
Q

2 pros and cons of multinational

A

Wages and raw mats can be cheaper in host country
Grants can be issued by government to locate in certain country

Language barriers can slow down coms
Cultural differences can affect production

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21
Q

What is a social enterprise

A

Aim to make a profit but reinvest profit in business
Operate in private sector

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22
Q

Describe charities and who they’re controlled by

A

Set up with sole purpose of raising money to help others
Controlled by board of trustees
Employees are bolunteers

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23
Q

2 pros and 1 cons of charities

A

Exempt from paying some taxes
No wage costs as employees volunteers

Can be difficult to compete with large marketing budget of private sector firms

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24
Q

2 pros of social enterprise

A

Good quality employees who believe in the social mission
Likely to receive gov grants due to positive impact on society

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25
Name 5 objectives
Profit max Sales max Csr Customer satisfaction Survival
26
What is csr
Social responsibility , aiming to act in any ethical way that benefits society or the environment
27
3 pros of CSR
Good rep Customers who support cause more likely to buy from firm Firm can attract Hugh quality staff who agree with ethicsnof firm
28
4 pros ofngrowth
Reduces risk of failure Increases profits Avoids being taken over Economies of scale
29
Name methids of growth
Organic growth Diversification Horizontal integration Forward vertical integration Backward vertical integration Lateral integration Conglomerate integration
30
Describe organic growth
Firm grows from inside without getting involved with oursuder
31
Name 4 methods of organic growth
Launching new products or servuces Opening/expanding branches Intiducting eccomerve Hiring more staff
32
What I’d diversification
New Products launched across new different markets
33
Diversification 2 pros
Increases potential customers Spreads risk
34
Horizontal integration
2 firms from one sector become one business
35
4 pros of horizontal integration
Newer, larger business can dominate market Completion reduced More economies of scale Due to reduced comp firm can increase prices
36
3 cons of horizontal growth
Merger/takeover may not apply with rules and therefore isn’t aloud to happen Quality may suffer and get sloppy due to lack of comp Customers may have to pay higher prices for the same goods
37
What is economies of scale
Bulk buying discounts and easier sources of finance due to nsuiness being so large
38
What is forward vertical integration
2 business from different sectors become one, when a firm takes over a business in later stage of industry
39
What is backwards vertical integration
Firm takes over/merges with business in earlier stage of industry
40
2 pros of forward vertical
Business can decide wether to stock competitors of new merged business or not Increases profits by cutting out middle man
41
3 pros of backward vertical
Guaranteed lifetime supply of stock Quality of supplies can be strictly controlled No need to pay supplier profit margin, therefore cheaper
42
Cons of backwards AND forward integration
Company may be unable to manage new activities successfully, therefore have to get managers costly Focus on new activities could diversely affect core activites
43
What is lateral integration
Firm merges with a business in same industry but doesn’t provide same products
44
2 pros and 2 cons of lateral integration
Firms can target new markets therefore increased sales New products can compliment existing ones Lack of knowledge in new market may affect performance of products May diversely affect core activities
45
What is conglomerate integration
When businesses in different markets join together, a merge of business whose activities are totally unrelated
46
4 pros of conglomerate
Spreads risk Firm is larger and there4 more financially secure Buyer acquires asserts of the bought over company aswell Business gains sales and customers of acquired firm
47
4 cons of conglomerate
May fail as business have no knowledge of acquired firms market Can loose focus on core activities impacting other products Firm may become too large and inefficient to manage
48
Ways off achieving/funding growth
Divestment Retained profits Deintegration Asset stripping Out sourcing
49
What is divestment
Selling off part off firm, eg selling off one of companies brand
50
What is deintegration
Firm selling off part off supply chain it owns
51
What is asset stripping
Selling off factories, retail spaces or equipment
52
What is outsourcing
When a business arranges for another org to carry out certain activities for it
53
Outsourcing 2 pros and 2 cons
Allows firm to focus on core activities and what it’s good at Higher quality from outsourced firm as they have greater expertise and specialist equipment Communication with outsourced business needs to be very good to ensure specification are met Could be more expensive than in house specialists
54
3 political favtors examples e and def
Any action or desicionsmade by gov Changing laws Tax rate vhanges Changing vat rates
55
Economic factors 3 and def
Current state of economy Boom- GDP and employment levels very high - demand for prods high Recession - GDP and employment levels low/falling - demand for prods low/falling Recovery - GDP and employment levels rising - demand for prods increasing
56
3 sociocultural factors and def
Concerned with societal changes Changing fashion trends Ethical considerations Flexible working arangemts
57
2 technological factors examples and def
Concerned with advancing technology advancements that affect firm Social media - worldwide adverts 4g- allows orgs employees to download info on the move
58
3 environmental factors and def
A rise in ways to protect environment or ways environment affects firm Weather Recycling Carbon footprint
59
Competitive factors def
Refers to rival competitors that provide similar service or products
60
Name 4 stakeholders
Bank Customers Employees Owners
61
What is stakeholder conflict and example
2 stakeholders both cannot get want at same time Employees want a pay rise where as owners want to max profits
62
What is stakeholder interdependence and example
Stakeholders relying on each other to help them achieve their intrests Managers want high quality raw mats suppliers want repeat business
63
What is tall structure
The one with many layers of management and the hierarchy of the tall structure, long chain of command
64
3 pros of tall structure
Each staff member knows who to report to Lots of levels off command there4 lots of promotional pops and there4 motivational Narrow span of control tehre4 managers have more time for planning supervison, ect.
65
3 cons of tall structure
Coms. Take long time to flow down through levelss there4 slow decision making Slow to react to market changes Narrow span of control there4 managers supervise more closely which makes employees feel too much pressure
66
What is a flat structure
Few levels of management, shorter chain of command
67
Flat structure 3 pros
Info communicated quickly between levels Quicker to respond to external factors Wide span of control there4 staff more empowered to make decisions themselves and are delegated tasks
68
3 cons of flat structure
Fewer prom opps. There4 quality staff may leave As fewer management levels 4 staff ,at be delagated more tasks 4 staff feel pressured Wide span of control 4 subordinates have less opportunity to seek help
69
What is delay Erin going
Removing layers of management to move to a flatter structure
70
Delayering 3 pros
Money saved on wages off management level that’s removed Quicker decision making as shorter chain of command Firm more responsive to external factors as shorter chain of command
71
3 cons of delayering
Fewer prom. Opportunities Firm may loose key members off staff Redundancy payments off employees is costly
72
What is centralised structure
Decision making and control kept at very top level
73
2 pros pr centralised structure
Procedures standardised 4 consistency high Low risk on information leaks from branches/departments
74
3 cons of centralised structures
Less responsibility given to subordinates 4 demotivated staff Decisions won’t reflect needs of local marktes Slow to react to external favtors
75
What is a decentralised structure
Decision making and control delegated to individual branches/departments
76
4 pros of decentralised structure
Fast to respond to external factors Decisions can be made fast Subordinates empowered 4 encourages creativity Senior management less stressed as less decision making
77
3 cons of decentralised structure
Overall image of org may be lost due to every branch operating differently Additional training required for middle management Low level poor decisions can harm firm as a whole
78
What is a matrix structure
Org arranges employees into temporary teams to carry out particular tasks, teams are made up of employees from different departments
79
2 pros and 2 cons of matrix structure
Specialised staff from all functions Complex problems can be solved Many managers across different project teams 4 high wage costs Staff can be confused as off who to report to
80
What is an euntrapeneruial structure
One main decision maker, staff have some input but rarely consulted in decision making
81
3 pros of euntrepenurial structure
Decisonsmade fast as little/no employee consultation Staff know who they need to report to High quality decions are made as experienced decision makers make them
82
3 cons of euntrepenurial structure
Heavey workload for main decision maker If decision maker busy key decions can’t be made Subordinate staff don’t get opp. To show creativity r demotivating
83
What are the 3 types of decision making
Strategic Operational Tactical S T O
84
Strategic Decision making time period, level made by, risk and purpose
Long term Senior management High risk Purpose of meeting overall objectives set by org
85
Tactical Decision making time period, level made by, risk and purpose
Med term Middle management Med risk Purpose of achieving strategic decions
86
Operational Decision making time period, level made by, risk and purpose
Short term Junior management Low risk Purpose of reacting to situations as they arise

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