Unit 2

Question 1

Qualities of leaders

Answer 1

Leaders set an example for other workers
Leaders are naturally chosen whereas managers are appointed
Take risks

Question 2

Qualities of managers

Answer 2

Confident in decision
Problem solver
Good relationship with employees

Question 3

Autocratic

Answer 3

Someone’s who’s very commanding and doesn’t let people have a say

Question 4

Democratic

Answer 4

Someone who takes all employees opinions into considerations

Question 5

Paternalistic

Answer 5

When someone is the father figure of the business and your all in a family type of system

Question 6

Laissez faire

Answer 6

When your given a task and you do it how you like

Question 7

Internal influences of leadership styles include

Answer 7

Financial state of business
Motivation of employees

Question 8

External influences on leadership styles

Answer 8

Action of competitors
Speed and growth of economy

Question 9

Benefits of decision trees

Answer 9

Forces managers to consider the different probabilities of success and failure and the impacts
Consider the initial costs
Way of comparing option on financial gain
Logical comparison of options available to managers at a given time

Question 10

Drawbacks of decision trees

Answer 10

Data can be inaccurate because of bias
Time consuming and waste of resources
Figures are based on predictions
Can be manipulates by managers to get desired output

Question 11

Usefulness or stakeholder mapping

Answer 11

Can help identify external and internal stakeholders
Can identify stakeholder interests and avoid conflict
Might help improve stakeholder engagement and relationship building
Can help understand issues from perspective of stakeholders

Question 12

Drawbacks of stakeholder mapping

Answer 12

Data only as good as the knowledge of the plotter
Bias
Time consuming
False sense of security

Question 13

What is the tannenbaum Schmidt continuum

Answer 13

A theory that places mangers on a scale according to how they manage and lead

Question 14

What are the steps to approach decision trees

Answer 14

Identify options
Add possible outcomes
Add associated costs outcomes and possibilities
Calculate expected values and net gains

Question 15

What are internal influences of leadership styles

Answer 15

Urgency of task
Unexpected tasks
Skill set of workforce
Size of workforce

Question 16

What are external influences of leadership styles

Answer 16

Economic demands
External crisis
Speed and growth of economy
Actions of competitors

Question 17

What is an APR

Answer 17

Annual percentage graph
Affects how business source materials for their products
If interest is high it means people don’t spend which means less disposable income

Question 18

What are exchange rates

Answer 18

The value of one currency expressed in terms of another currency

Question 19

What does SPICED stand for

Answer 19

Strong pound impacts cheap exports dear

Question 20

What does WPIDEC stand for

Answer 20

Weak pound impacts dear exports cheap

Question 21

Explain what happens when prices go up

Answer 21

Prices go up
Inflation goes up
Banks up interest rates
Economy goes down
Other countries resort to trading with different places

Question 22

Give examples of internal stakeholders

Answer 22

Shareholders
Employees
Managers
Owners

Question 23

Give examples of external stakeholders

Answer 23

Local community
Government
Council
Suppliers
Banks
Competitors

Question 24

What do shareholders want

Answer 24

Brand recognition
Return on investment dividends
Profit profitability
Share value when selling

Question 25

What employees consider

Answer 25

Salary Flexibility Fair treatment Personal development

Question 26

What do managers consider

Answer 26

Productivity Job security Fringe benefits High employee morale Employee retention

Question 27

What do owners want

Answer 27

Success Market share Growth Cash Survival Reputation Loyal customers Profits

Question 28

What do banks want

Answer 28

Cash Ability to pay back on time Interest rates

Question 29

What do pressure groups consider

Answer 29

Green Ethics Land and wildlife Welfare

Question 30

What does the local community consider

Answer 30

Job opportunities Noise and visual pollution

Question 31

What do suppliers want

Answer 31

Fair trade Partnership Pay on time Ethics of use Bulk buying

Question 32

What do customers want

Answer 32

Quality Availability Value for money Convenience Ethics Customer service

Question 33

What factors affect approach to decision making

Answer 33

Profitability of situation Speed of decision Character of person Information available Size of business

Question 34

What does centralised mean

Answer 34

All decisions made from head office then pushed out

Question 35

What does de centralised mean

Answer 35

Local branches make decisions

Question 36

What is intuition

Answer 36

A way of decision making that involves a guy feeling from the manager or a hunch that is usually from experience

Question 37

What are benefits of intuition

Answer 37

Experience is reliable Quick and cheap Reduces risk of flawed data

Question 38

What are drawbacks of intuition

Answer 38

Very subjective High chance of negative outcome as it’s not scientific Investors might not support decision Higher level of risk

Question 39

What is scientific decision making

Answer 39

A manager uses data and analyses is before making the decision and based the decision in data and figures

Question 40

What is the decision making process

Answer 40

Risk Reward Uncertainty Opportunity cost