Understanding business past papers Flashcards
(21 cards)
Explain the advantages of internal (organic)
The business may hire new staff. This means they can bring new ideas to the business to develop new products
Less risky than being taken over by another business. this means control of the business will not be lost
the business may open more shops. this means the business can reach new markets and increase sales
the business may purchase new technology. this means the amount of production can increase
Describe the impact of competition policy on an organisation
May be forced to change prices
May be fined for anti-competitive behaviour
Compare functional grouping with customer grouping.
With functional groupings departments can compete against eachother. whereas with customer groupings they can also compete against eachother
Departments are grouped based on similar skills expertise and resources used. Whereas customer groupings is when the organisation groups their activities and resources based on the type of customer
Functional groupings cater to the whole organisation. whereas customer groupings will focus on customers needs
Customer groupings are more responsive to changing customers needs. whereas functional groupings are slow at responding to change
Explain the impact of environmental factors on an organisation.
There is a natural disaster such as a storm. this means the business could be forced to closed reducing profits
there can be strong weather such as heavy snowfall. this means suppliers may not deliver raw materials on time
There is a change of season. This means customer demands will change which can increase sales
There is increased pressure to recycle and become environmentally friendly. This means the businesses costs will increase
Explain the role of a manager in an organisation.
a manager organises resources. therefore it ensures the organisation is successful in achieving the objectives
a manager coordinates to make sure everyone is working towards the same goal. This means the task is done more efficiently
a manager commands by giving instructions. this means confusion amongst staff is reduced
manager delegates responsibility to carry out a task to a subordinate. This means the manager has more time to focus on
other work
a manager motivates staff and inspires them therefore the objectives may be achieved by staff working harder
a manager controls by evaluating what has been done and checks
it against what was expected - therefore he/she can put
different plans in place to rectify the situation
a manager plans the objectives - which means they have to
decide what has to be done in order to reach the objectives
Compare operational and strategic decisions
operational decisions are short term decisions. Whereas strategic decisions are long term decisions
operational decisions are made by branch managers. Whereas strategic decisions are made by senior managers
operational decisions usually involve low risk. whereas strategic decisions usually involve high risk
Explain the effects of outsourcing on an organisation.
outsourced staff usually have better expertise. This means the work is likely to be higher quality
outsourced companies will have specialist equipment. This means the organisation can sell their equipment
organisations can concentrate on core activities. Therefore it would result in the organisation producing a better core
product/service
more efficient and therefore more cost effective than doing the activity yourself. This means profits will increase
difficult to keep confidential information confidential. This means confidential information can be exposed to competitors
less control over the work that is completed. This means the work may not be completed the way the business would like it to be done
will only use the outsourced staff when required. this means the organisation can stay within a budget
Discuss costs and benefits of Fairtrade.
Fairtrade mark can attract customers
it can be time consuming and costly to become Fairtrade certified
can give an organisation a positive ethical image
products tend to be more expensive for the consumer
Explain the benefits of developing a strong corporate culture
Employees are motivated because ethey don’t wan to let the team donw. This means the quality of their work is likely to be high
Will increase brand recognition through the use of logo and uniforms. This means the businesses market share can increase.
Employees will feel part of the organisation. This means employees are less likely to leave the organisation and look for a new job
Improved relationships amongst staff. This means it can reduce the number of grievances against employees and employers
Describe the methods an organisation could use to become more environmentally friendly
reuse materials in the production process
encourage employees to use recycling bins
use environmentally friendly packaging
dispose of waste in an environmentally friendly manner
do not dump waste in landfill if it can be recycled
use suppliers that have produced raw materials in an ethical manner
What is chain of command
the order in which instructions are passed down in an organisation from one level of management to another
What is delegation
it takes place when someone requests a task to be completed by a subordinate
What is a wide span of control
having a large number of subordinates who report to the manager
Explain the methods and organisation may use to demonstrate they are socially
responsible.
encourage waste reduction. This means landfill waste would be reduced.
source from ethical suppliers. this means it will encourage sustainability
use electrical vehicles. therefore the environment will be healthier
Describe the ways in which a manager can measure the success of a decision.
gather feedback from staff at meetings
review the number of complaints made
assessing if staff motivation has improved
assess if objectives have been achieved
asking customers about their opinion through a survey
assessing is sales and profits have improved
Explain the advantages and disadvantages of tall structure
there are more promotion opportunities. this means staff turnover can be reduced
there are many layers of management. this means management salaries are increased
there is a long chain of command. this means communication will be slowed down
describe the advantages and disadvantages of horizontal integration
market share is increased
prices can be raised
business can become too large and unmanageable
may breach competition legislation
may affect the organisations core activities
Explain the disadvantages of becoming a multinational
legislation may exist on how a product is marketed. This means the organisation may have to change their marketing techniques
Different cultures in other countries will exist. This means the organisation will have to be sensitive to different countries cultures which can impact the product range offered
Different languages will exist in different countries. This means the organisation may have to employ specialist linguists to work with the organisation which Is costly
there can be different time zones between countries. this means communication can be difficult at certain times of the day
Distinguish between quota and random sampling
with quota sampling individuals are chosen by criteria. whereas with random sampling random individuals are chosen from a list
with quota sampling it can take time to find respondents who meet the criteria. whereas with random sampling it is quick to ask random respondents
quota sampling can result in bias. whereas random sampling reduces bias
Compare the tertiary sector with the primary sector
tertiary sector is the provision of a service. whereas primary sector is when natural resources are extracted from the ground
the tertiary sector sells the final product to the consumers. whereas in the primary sector the raw materials are normally sold to the manufacturer
Describe the process involved in workforce planning
the business will first analyse the future demand for its goods and services
it will then decide which staff are needed and with what skills
the business will then look to fill remaining gaps through employing new staff
staff are then trained to the required level of skill
if there is a surplus of staff the business may need to carry out redundancies
