Understanding Business Flashcards
(148 cards)
1
Q
Sectors of industry
A
Primary sector- exploiting natural resources. E.g farming, mining and oil drilling
Secondary sector- manufacturing and construction by taking natural resources and turning them into goods. E.g house building, car production
Tertiary sector- providing services. E.g retail, banks, hotels
Quaternary sector- providing information and knowledge based services. E.g ICT, consultancy and research and development
2
Q
Sectors of the economy
A
Private sector- profit making businesses. E.g ford, Samsung, Apple
Public sector- government owned organisations. E.g nhs, police, education
Third sector- provides goods or services to benefit others. E.g charities, voluntary organisations, social enterprise, democratic enterprises
3
Q
The private sector
A
Private limited companies
Public limited companies
Franchise
Multinationals
4
Q
The public sector
A
Central government
Local government
5
Q
Third sector
A
Charities
Voluntary organisation
Social enterprise
Democratic enterprise
6
Q
advantages of private limited company
A
- owners/shareholders have limited liability
- ownership is not lost outside the business
- business usually retains a close an friendly feel with a high level of customer service
- expertise and business acumen are gained from an experienced board of directors
7
Q
disadvantages of private limited company
A
- profits have to be split with many shareholders by issuing dividends
- a complicated legal process is require to set up the business
- a limited source of capital is available as shares are not sold publicly
- financial statements have to be shared with companies house meaning profits are not kept private
8
Q
Private limited companies
A
Shares are not available to the general public and are sold privately to investors. These owners become shareholders and the company has limited liability
9
Q
Public limited companies
A
Owned by shareholders who have limited liability however they can share their shares publicly through the stock market. This type of company aims to dominate the market and increase market share
10
Q
Advantages of public limited companies
A
- shareholders have limited liability
- large amounts of finance can be raised through the public sale of shares
- it is easy to borrow finance due to a public limited companies size and reputation so less risk for banks
- can easily dominate the market
11
Q
Disadvantages of public limited companies
A
- dividends are shared with many shareholders
- Control of the business can be lost as anyone can buy shares on the stock market
- annual accounts have to be published
- setting up a public limited companies is complicated and costly
12
Q
Franchise
A
A business model that allows businesses to pay a sum of money to own a branch of a well known existing business. Franchiser’s main aim is to grow and increase market share
13
Q
Advantages for the franchiser
A
- low risk form of growth as the franchisee invests the majority of the capital
- receives a percentage of al franchisee’s profits each year (known as royalties)
14
Q
Disadvantages of the franchiser
A
- the reputation of the whole franchise can be tarnished by one poor franchisee
- only a share of profits is received rather than all profits as it would be if they owned each branch
15
Q
Advantages for the franchisee
A
- the franchise is a well-known business with an existing customer base
- industry knowledge and training is provided by the franchiser
- the franchisee benefits from national advertisements carried out by the franchiser
16
Q
Disadvantages for the franchisee
A
- there is very little autonomy over decisions as the franchiser decides on products,store layout, uniforms etc
- royalties have to be paid each year
- there are high initial start-up fees
17
Q
Multinationals
A
A business that has operations in more than one country. This could be world wide retail outlets or just retail outlets in one country and a production facility in another.
18
Q
Advantages of multinationals
A
- wages and raw material costs are lower in host countries
- business can avoid legislation in the home country
- grants can be issued by governments to locate in their country
- business can avoid quotas and tariffs issued by their own governments
19
Q
Disadvantages of multinationals
A
- language Barriers can slow down communication
- cultural differences can affect production
- exchange rates can affect purchasing and paying expenses in different countries
- time differences can hinder communication between head office and branches around the world
20
Q
Central government
A
Provides national services to the citizens that it would be very difficult to rely on the private sector to provide. These are paid for through taxation. Also includes nationalised companies which are private sector businesses that have been bought in part or in full by the government such as Royal bank of Scotland
21
Q
Local government
A
Government split up into local authorities. They provide essential services to the public such as schools and street lighting free of charge. Finance comes from taxation collected by central government. Some organisations such as a leisure centre charge for services to fund running costs. All local governments organisations aim to provide a quality service
22
Q
Charities
A
Set up with the sole purpose of raising money to benefit others. Financed through donations, sponsorships and fundraising events. They might also have a trading arm through a retail outlet that trades to raise money. Any profits made are given instead of kept by the owner. There are no individual owners of a charity but is set up as a trust which is controlled by a board of trustees.
23
Q
Advantages of a charity
A
- Charities are exempt from paying some taxes such as vat and corporation tax
- there are low wage costs due to volunteers working for free
- private companies are more willing to donate to and sponsor charities than ever before as it is good PR
24
Q
Disadvantages of a charity
A
- It can be difficult to compete with large marketing budgets of organisations within the private sector
- Charities rely on volunteers who may leave for paid work
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Voluntary organisations
Aim to provide a service for their members and local community. They raise finance mostly through membership subscriptions. They are controlled and run by an elected committee and helped by volunteers
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Social enterprise
Aim to make a profit to benefit a specific group or cause. Can be owned by one person,partnership or shareholders in a limited company. Control can be by a board of directors or paid manager and financed from capital investment or bank loan. Profits benefits a social, environmental or cultural cause and not solely the owners of the business
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Advantages of a social enterprise
- social aims can endear a social enterprise to customers
- good quality employees who believe in the social mission are attracted to the organisation
- they are Linley to receive government grants due to their positive impact on society
- asset lock means that should the enterprise be closed down the sale of any assets and any profits will be used to benefit their cause
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Democratic enterprise
Aim to make profit but not maximise profit and decision making is democratic. Increasingly popular with governments who want to encourage enterprise and increase wealth in their economy
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Business objective-maximising profits
Making as much profit possible from buying and selling goods
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Objective- survival
Avoiding going out of business and having to cease trading
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Objective- satisficing
Aiming for satisfactory or adequate result rather than the best possible outcome
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Objective- provide a quality service
Provide a quality service to customers to encourage customers to return and gain a good reputation
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Objective- increasing market share
Market share is the percentage of total sales in the market that a business has. Aim to improve their products to ensure customers return and entice their rival's customers to their business
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Objective- managerial objectives
Managers may pursue their own objectives that they believe will improve their status within the company
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Objective- sales maximisation
Similar to managerial objectives.increase sales. More interested in selling maximum amount of units instead of the profit
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Objective- corporate social responsibility
Aiming to act in an ethical way or in any way that benefits either society or the environment
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Methods to ensure Corporate social responsibility
- ethical and environmental responsibilities
- philanthropy
- economical responsibility
- legal responsibilities
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Advantages of positive corporate social responsibility
- business gains a good reputation for its caring nature
- customers who agree with the aim are likely to use the business
- business can attract high quality staff who believe in the ethics
- society and the environment are kept in order which will benefit the business in the long run
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Objective - growth
Making the business larger
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Advantages of growth
- reduces risk of failure
- increases profits
- avoids being taken over
- removes competition
- economies of scale, Ie bulk buying
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Internal/organic growth
Business growing without getting involved with another organisation. Growing this way increases market share without losing control of the business to outsiders
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Internal growth- launching new products
Business can meet the needs of different market segments especially if they diversify
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Internal growth- opening new branches
Business can reach new markets opening up in new locations. Can also expand existing premises to cater for more products/customers
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Internal growth- introducing e-commerce
By selling online a business can trade 24/7 to a global market
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Internal growth- hiring more staff
Increasing the number of staff will improve the business' ability to makes sales and develop products
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Internal growth- increasing production capacity
Business can invest in new capital and technology to make more products
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Integration- takeover
One business buys another. This can often be hostile and comes as a result of the smaller business struggling financially . Results in the smaller store taking the same of the larger one
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Advantages of integration
- gains market share and resources of the taken over business
- risk of failure can be spread
- economies of scale can be achieved
- competition is reduced which will increase sales
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Disadvantages of integration
- can lead to job losses as the new business wants its own management and employees
- bad for customers as less competition means higher prices
- change of name can put off loyal customer of the taken over business
- expensive to acquire another business
50
Integration- merger
Two businesses agreeing to join forces and become one organisation. Often friendlier and result in a new name and logo for the new merged organisation
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Advantages of merger
- market share and resources are shared which can spread risk and increase profits
- economies of scale can be achieved
- each business can bring different areas of expertise to the merger
- jobs are more likely to be spared in both businesses
- can overcome barriers to entering a market such as stronger competition
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Disadvantage of mergers
- customers may dislike the changer as the familiarity are lost
- marketing campaigns to inform customers of the change can be expensive
- can be bad for customers as less competition will mean higher prices
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Horizontal integration
When two businesses from the dame sector of the industry become on business
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Advantages of horizontal integration
- new larger business can dominate the market as competition will be vastly reduced
- new business can benefit from economies of scale
- can raise phrases , increasing sales because of less competition
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Disadvantages of horizontal integration
- might break EU competition rules
- quality may suffer due to lack of competition
- customer may have to pay higher prices for the same goods
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Forward vertical integration
When two businesses from different sectors of industry become one business. Forward vertical is when a business takes over or merges with a business in a later sector of industry
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Backward vertical integration
When a business ages over or merges with a business in an earlier sector of industry , taking over their supplier
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Advantages of forward vertical integration
- business can control supply of their product and could decide to not supply to competition
- can increase profits. By cutting out the middle man
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Advantages of backward vertical integration
- guaranteed and timely supply of stock
- no need to pay a supplier their marked up prices so stock is cheaper
- quality of supplies can be strictly controlled
60
Disadvantages of both backward vertical and forward vertical integration
- company may be incapable of managing new activities efficiently meaning higher costs
- focusing on new activities can adversely affect core activities
- monopolising markets may have legal repercussions
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Conglomerate integration
Businesses in different markets join together. Mergers of businesses whose activities are totally unrelated. Do this to spread risk and increase profits by having more varied products
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Advantages of conglomerate integration
- spread risk, if one market fails still got the other market
- overcome seasonal fluctuations in their markets and have more consistent year round sales
- larger and more financially secure
- gains customers and sales of the acquired business
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Disadvantages of conglomerate integration
- business may take in another market they know nothing about causing the new business to fail
- can lose focus on core activities due to having too many products across different markets
- may become too large and inefficient to manage
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outsourcing
also known as contracting out which is when an organisation arranges for another organisation to carry out certain activities for them instead of doing it themselves
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advantages of outsourcing
- can concentrate on doing what they are good at
- less labour and equipment is required for outsourced activities
- there should be high quality work from the outsourced business as it should have greater expertise and specialist equipment
- outsourced business may provide the service cheaper than an in-house department
- use the source when required so saving costs on idle staff and machinery
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disadvantages of outsourcing
- business will have less control over outsourced work so quality may fall
- communication between the business needs to be clear
- sensitive information could get into hands of competitors
- could be more expensive and expertise come at a price.
67
de- merger
when a single business splits into two or more spate components. the components are still owned by the same organisation but managed independently
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advantages of de- merger
- each new component can concentrate on its own core activities and grow as a result
- each new component has the chance to operate efficiently
- de- merged components can be divested which can meet competition regulations set by the EU
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disadvantages of de-merger
- customers may be put off by the de-merger and abandon the business altogether
- there are significant financial costs involved such as marketing campaigns and re-branding
70
divestment
selling off part of an organisation such as subsidiary company. an organisation may divest so concentrate on other areas of the business
71
asset stripping
taking over another company with the intent to sell off its assets for a profit. the individual assets can be more valuable than the organisation as a whole.
72
tall structure
most businesses have a hierarchy. positions within the organisation with different levels of authority and responsibility, those with the least amount of authority at the bottom and most at the top. commands flow down the chain of command. this type of structure suits large organisations with many specialised departments
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advantages of a tall structure
- each staff members knows their roles and who to report to
- many promotion opportunities which can motivate staff
- narrow span of control so managers have time to plan, supervise and decision make
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disadvantages of tall structure
- communications take time to flow down through the levels which slows decision making
- organisation can be slow to react to changes in the market
- narrow span of control so manners supervise work more closely which can put staff under pressure and managers have fewer staff to share ideas with
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Describe a flat structure
pyramid structure like a tall structure. Commands flow from to to bottom. However a flat structure has fewer levels of management and a shorter chain of command. This type of structure suits small to medium sized organisations
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Advantages of flat structure
- Information can be communicated quickly between levels
- the organisation can respond quickly to external factors such as competition
- there is a wide span of control which means managers have to delegate tasks to staff which can raise morale as staff feel trusted and staff are empowered to make decisions themselves
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Disadvantages of flat structure
- fewer levels mean fewer promotion opportunities so quality staff may leave to gain promotion in larger organisations
- staff may be delegated more tasks which could put them under pressure
- the wide span of control means managers time is at a premium which can lead to snap decisions, less time for planning and subordinates may have no one to seek help from
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describe Delayering
Removing one or more levels of management from a tall structure to make it flatter is known as delayering
79
Advantages of delayering
- money is saved on paying the salaries of the management level that is removed
- quicker decision-making and communication are possible as there is a shorter chain of command
- can be more responsive to changes in the market as there are fewer levels for information to pass through up to the decision makers
- there is wider span of control
80
Disadvantages delayering
- there are fewer promotion opportunities for staff
- redundancy payments will cost the organisation a significant amount of money
- the organisation will lose key members of staff in the restructure
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Describe centralised management
Decision making and control is kept at the very top level of a centralised organisation.
82
Advantages of centralised management
- a high degree of corporate identity and strategy exists as decisions are made for the whole organisation
- procedures are standardised which ensures consistency
- there is low risk of important information leaking from branches and departments
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Disadvantages of centralised management
- less responsibility is given to subordinates which can result in demotivated staff
- decisions will not reflect the needs of local markets
- react slowly to external factors such as competition improving their product range
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Describe decentralised management
Decision making and control is delegated to individual branches or departments. This type of structure is best used in retail chain that needs to respond to the needs of their local markets
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Advantages of decentralised management
- the business reacts quickly to changing external factors
- decisions are made quickly as local managers don't need to consult senior managers before implementing decisions
- more subordinates are empowered which encourages creativity
- senior management at head office are relieved of the burden of constant decision making
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Disadvantages of decentralised management
- the organisation can overall lose corporate image if each department/branch is operating differently
- local branches could start to compete with each other if they are allowed to make key decisions
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Describe the matrix structure
Involves being arranged into temporary project teams or carry out a particular task. Teams are made up of employees from different functional areas. Each staff member will have two managers , one will be the manager of their functional area and the other will be their project manager
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Advantages of matrix structure
- each team has specialised staff from all functional areas
- complex problems can be solved
- staff can use their expertise and such have job satisfaction and motivation
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Disadvantages of a matrix structure
- many managers across all project teams will mean high wage costs
- duplication of resources such as administration staff and equipment
- staff can be confused as to who to report to
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Describe entrepreneurial structure
Usually they have one main decision maker , the owner themselves. Of course other staff can have some input but generally they are rarely consulted and final decisions are made by the owner
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Advantages of entrepreneurial structure
- decisions are made quickly as there is little consultation
- staff know who they need to report to
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Disadvantages of entrepreneurial structure
- this structure can create a heavy workload for the main decision maker
- if the owner is busy or not available, key decisions can't be made
- other staff don't get a chance to show initiative, stifling creativity and possibly demotivating some staff
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Name organisational grouping
Functional, location, product\service, customer
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Describe functional groupings
This involves grouping an organisation into departments based on skills and expertise. The main functional areas of most organisations are marketing, finance, operations and human resources. These main functional areas can be supported by administration and IT departments.
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Advantages of functional groupings
- staff with similar skills and expertise are togetherness allowing for specialisation
- staff know who to report to and can get guidance from more experienced staff in their area of expertise
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Disadvantages of functional grouping
- the organisation can become too large to manage if functional departments grow rapidly
- functional grouping is often coupled with a centralised management structure so communication can take a while to filter through to functional departments causing slow reactions to external factors
- functional departments can be more interested in their own objectives rather than the organisations objectives as a whole
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Describe location grouping
This is grouping an organisation into geographical divisions. Each division will operate to serve customers in a particular location.
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Advantages of location grouping
- each division can meet the needs of its local market
- the business can react to changing external factors quickly
- it is easy to identify a failing area and hold regional managers accountable
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Disadvantages of location grouping
- duplication of resources such as administration staff or computer equipment across each group is inefficient
- divisions may compete against each other and forget the overall objectives of the organisation as a whole
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Describe product/service grouping
This is grouping an organisation into divisions that deal with different products or services. This is suitable for large conglomerate organisations
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Advantages of product/service grouping
- the business can react to changing external factors that affect each particular groups market quickly
- it is easy for management to identify struggling products/services
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Disadvantages of product/service grouping
- duplication of resources can occur
- a new group needs to be set up every time the business launches a new product meaning more staff, equipment and premises costs
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Describe customer grouping
This involves grouping the organisations resources into divisions that each deal with a different type of customer.
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Advantages of customer grouping
- each group can tailor its product or service to its own type of customer
- customer loyalty can build up due to the high level of personal service that can be achieved
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Disadvantages of customer grouping
- duplication of resources can occur
- this is only suitable for large businesses with any customer types/segments that are sufficient size. It is inefficient to offer a group for a small customer segment
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Describe downsizing
This involves an organisation either closing an unprofitable division, such as a location group, altogether or merging two divisions together
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Advantages of downsizing
- this cut the costs of wages and rent
| - the business is more efficient and can become more competitive
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Disadvantages of downsizing
- valuable skills and knowledge are lost when redundancies are made
- remaining staff feel vulnerable and are demotivated
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Name internal factors
- availability of finance
- human resources
- technology
- corporate culture
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Describe the internal factor, the availability of finance
If there is a lack of finance the organisation might not be able to implement decisions and achieve their objectives such as expanding the business by developing new products or offering wage rises to motivate staff. The business may have to take drastic action to cut costs such as downsizing and delayering
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Describe the internal factor, human resources
Manager can impact the organisation by decision making and their ability to lead and motivate a team
Employees can impact the organisation by their ability and training, their morale and their experience of doing the job
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Describe the internal factor, technology
The technology must be modern in order to remain competitive. Technology such as e-commerce which can work 24/7, apps that can keep the businesses information up to date and email which can improve the speed of communication
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Describe the internal factor , corporate culture
It is the set of values, beliefs and customs that is shared by all people in an organisation. Such as company values, corporate colours , office layout, uniformity of layout,language and jargon, symbols, slogans and mottos, rituals, stories, reward culture and flexible working arrangements
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Advantages of corporate culture
- flexible working arrangements mean staff work when and where they are most productive
- employees feel part of the organisation through the use of uniforms, jargon and so on
- customers gain a sense of quality product
- rituals create a relaxed ethos and can improve employee relations
- employee loyalty is increased as they are happy in their jobs and feel a sense belonging to the business
- high quality new staff are attracted to the business as they like the idea of working in the culture
- a relaxed working environment empowerment and a flat hierarchy can motivate staff
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Disadvantages of corporate culture
- culture is hard to introduce unless it starts from the founders
- staff have to be aware of changes to culture and if they aren't they might resist change
- modern office cultures can leave some employees physically and socially distant from others demotivating them
- some cultures can be seen as a bribe to get staff on board
- management can lose focus and control if a culture is to loose
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Name external factors
PESTEC
| Political, economic, social, technological, environmental, competition
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Describe political factors
They arise from decisions being made and actions taken by the government. This can be changes in laws and legislation or alterations to a governments fiscal policy which impacts upon spending in an economy by altering tax rates and levels of public spending.
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Describe economic factors
Economic factors arise from the state of the economy. This could be a boom which means high employment levels which means they can increase profits. Recessions mean a fall in demand and creates losses. Recovery is when consumers are in better financial position so sales increase
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Describe economic policy
The role of the government to try control the economy through a number of measures. The fiscal policy which concerns the tax rates and its level of public spending. The monetary policy is the ways in which it controls the supply of money into the economy and therefore adept spending
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Describe social factors
Social factors concern the ways in which society changes and the need for businesses to adapt in the same way. Social factors are uk's ageing population, more women with professional careers, evolving work like balance, changing fashion trends and flexible working arrangements
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Describe the technological factors
Technological factors concern the quickly evolving technological advancements that can impact on organisations. Technological factors such as social media, wi-if and 4G
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Describe environmental factors
Environmental factors can either arise from the way in which the natural environment impacts on organisations or the ways that organisations act in an ethical and environmentally friendly manner. Environmental factors such as weather, recycling, carbon footprint
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Describe competitive factors
Refers to rival organisations that provide the same or a similar product and attempt to take their customers, attract new customers or keep their own customers.
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Describe competition policy
In 2014 the competition and markets authority was launched by the uk government. It aims to investigate markets and enforce competition policy in order to promote competition for the benefit of consumers
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Reasons for promoting competition
It is in the governments interest to promote competition for the following reasons, prices are kept low for consumers, products and services are high quality, customer service is good, entire markets improve and grow, creating jobs and healthy markets can attract foreign investment,
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Impact of competition policy
Some areas that competition policy covers is cartels which is colluding with other organisations to fix prices to make higher profits. Mergers- the CMA can block mergers if it is likely to lead to a substantial lessening of competition. Anti-competitive behaviour which is when the organisation cannot use their position to charge drastically low prices, pay lower prices to suppliers or control the supply of goods . Consumer protection means consumers have rights and are protected from unfair practices such as hidden charges and poor customer service
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Describe stakeholders
Stakeholder is an individual or group of people who have an interest in the success of an organisation. Internal stakeholders are from within the business such as owners, managers and employees. External stakeholders are from outside the organisation such as government, banks, customers and suppliers
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Describe conflicts of stakeholders
- employees vs owners/manager
- customer vs owner/manager
- suppliers vs owner/manager
- government vs owner/ manager
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Describe interdependence of stakeholders
- owner/manager and governments
- owners/manager and suppliers
- owners/managers and customers
- owners and employees
- managers and employees
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Name types of decisions
Strategic, tactical and operational
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Describe strategic decision making
This is a long term decision and is made by senior managers. This is made to meet the overall purpose and direction of the organisation such as to grow the business
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Describe tactical decision making
This is medium term decisions and are made by the middle managers. This is made to achieve the strategic decisions such as launch new products to grow organically
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Describe operational decision making
This is a short term day to day decision and is made by supervisors and all staff. This is used to react to situations as they arise such as dealing with customer complaints
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Describe a mission statement
It is part of the strategic decision making process, organisations will release a mission statement, a written statement outlining the overall aims and objectives of the organisation. A mission statement can let customers know the overall aims and objectives, attract quality staff if they agree with the aims and inform potential investors about the strategic goals of the business
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Describe SWOT analysis
An organisation can use a structured decision making model known as SWOT analysis, this allows them to look at their internal strengths and weaknesses as well as external opportunities and threats.
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Describe possible strengths in a SWOT analysis
- availability of finance
- well known brands/products
- goods that make most profit
- products that are bench markers for competitors
- assists the business owns
- high quality staff and good morale
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Describe possible weaknesses in the SWOT analysis
- lack of finance
- lack of technology
- poor customer service
- faulty products
- products that make a loss
- assets that are in a state of despair
- untrained staff and low morale
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Describe possible opportunities in a SWOT analysis
- a competitor going bust
- a boom period in the economy
- customer tastes and fashions falling in like with the organisations specialism
- government introducing favourable legislation
- advances in technology that the business could exploit such as ecommerce
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Describe possible threats in a SWOT analysis
- competitors actions such as cheaper prices
- a downturn in the economy
- customers tastes and fashion changing away from those the business specialise in
- government introducing legislation that impacts badly on the organisation
- advancement in technology that could leave the business behind
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Advantages of using SWOT analysis
- identifies strengths and allows a business to build upon them
- identifies weaknesses and allows them to be addressed
- identifies opportunities and allows them to be exploited
- identifies threats and allows them to be turned into opportunities
- time is taken to analyse the business current position so no rash decisions are made
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Disadvantages of using SWOT analysis
- very time consuming which can slow down decision making
- a very structure process which can stifle creativity and gut reactions from managers
- can generate many idea however doesn't help pick the correct one
- could lead to bias
- may become outdated quickly
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Name factors affecting the quality of decisions
Human resources, availability of finance and technology
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Describe how human resources can affect the quality of decisions
-Managers ability, training and experience
-how much risk the manager is willing to take
-staff resistance to change
-managers ability to handle stressful and complex situations
The likelihood of overpowering managing directors or owners overturning decisions made by middle management
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Describe how the availability of finance can affect the quality of decisions
- whether finance is available to exploit opportunities, address weaknesses or build on strengths
- financial constraints may mean an organisation cannot choose the best solution to a problem
145
Describe how technology can affect the quality of decisions
- spreadsheets can improve accuracy of calculations
- databases can improve the speed of decision making by making it easy to research information
- email can be used to communicate regarding decisions to many employees
- the Internet can be used to find out a vast amount of information
- video conferencing can reduce the need for managers to travel to meeting saving time and money
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Describe other factors affecting the quality of decisions
- company policy may restrict the decisions made or options available
- lack of opportunity to consult others may mean that decisions are poor and staff can resist change
- time constraints can restrict the time taken to decide on a course of action
- the quality of information available might be poor
147
Describe the role of a manager
- Plan to be able to look ahead seeing potential opportunities, problems or setting targets and strategies
- organise so must set tasks for other employees that need to be carried out
- command so they can issue instructions
- coordinate so they have to be able to bring together the resources of the business
- control to make sure everything is being done to expectations
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Describe modern day roles
Delegate to give subordinates the authority to carry out management level tasks
Motivate to give a reason for staff to enjoy their work
