Unit 3: Area of Study 1 - Business Foundations Flashcards

Question

Government Business Enterprise (GBE)

Answer 1

A business that is owned and operated by the Government

Answer 2

- Involved in commercial activities - Aims to make a profit along with carrying out Government Policies - Aims to increase their value and returns for Shareholders (the Government) like other businesses - Normally controlled by a Board of Directors

Answer 3

- May invest in areas that the Private Sector may hesitate to invest in - Provides healthy competition to Private Sectors

Answer 4

- Strategic Directors can change with changing Governments - There can be political interference - The business may not be as productive as Private Sector businesses

Answer 5

Australia Post

Answer 6

Are goals that the business aims to achieve in the future. Objectives give the business and Employees a sense of purpose and direction

Answer 7

- To make a Profit - To increase Market Share - To fulfil a Market Need - To fulfil a Social Need - To meet Shareholder Expectations

Answer 8

- Profit is the amount of money remaining after Expenses have been deducted from Revenue - A business can make a Profit by increasing their Revenue or Minimising their Expenses

Answer 9

- Market Share is the proportion of the total sales the business has in an industry for a particular Good or Service, expressed as a percentage - To increase Market Share, a business takes Market Share away from another business

Answer 10

- A Market is a specific group of businesses that have similar characteristics to each other - Market Research can help find what the needs of different consumer groups are, which the business can aim to satisfy that need

Answer 11

Social Needs are focused on the community and how the business can look to improve the lives of others

Answer 12

- Shareholders are those that own part of the Business | - Shareholders expect to make a return on their investment through Capital Gains and Dividends

Answer 13

Is the continuing commitment of a business to go above and beyond their legal obligations to operate in an Economically, Socially and Environmentally Sustainable manner

Answer 14

- Reducing the business's carbon footprint - Making donations of time or money to charities - Giving non-profit business' proceeds - Ethical marketing - Waste management

Answer 15

An individual or group who have a vested interest in the operations of the business

Answer 16

- Owners - Shareholders - Directors - Management - Employees - Customers - Suppliers - Competitors - Government - Community

Answer 17

Want the business to make a Profit and conduct itself in a Socially Responsibly manner

Answer 18

Want the business that they have invested in to make Profit as this affects the value of their Shares and the amount of Dividends they receive

Answer 19

Has the expectation to be well rewarded with both money and share options

Answer 20

Expect to be involved in decision-making and to be rewarded fairly

Answer 21

Expect fair pay, good working conditions and ongoing employment

Answer 22

Expect good quality Products and/or Services at fair prices

Answer 23

Expect strong relationships with the business and to be paid on time

Answer 24

Expect healthy and fair competition

Answer 25

Expect businesses to help the economy and the community by providing local employment and to pay their taxes

Answer 26

Expect businesses to give back to the community, provide employment for local residents and to minimise their impact on the environment

Answer 27

Employees require safe working conditions and reasonable wages, but this will reduce the business's Profit and Dividends to Shareholders

Answer 28

Management wishes to keep down costs to improve Profits, but Suppliers that provide ethical materials require higher prices to cover their costs

Answer 29

Management could attempt to maintain their Profits and a high Dividend to satisfy Shareholders by raising the prices of products. This will upset Customers who expect reasonably priced products

Answer 30

Suppliers expect to be paid fairly and on time, but they might reduce costs by using unethical materials, which can upset members of the community

Answer 31

Management might decide to cut costs by neglecting maintenance, which could possibly put members of the community in danger

Answer 32

- Operations - Finance - Human resources - Sales and Marketing - Technology support

Answer 33

- Are the areas of the business that produces the Goods and/or Services - By having a good quality product and/or Service, it improves the business's competitiveness and meets objectives around Sales, Profit and Market Share

Answer 34

- Is the area of the business that is responsible for managing the money and budgets of the business - It is important that the business is able to manage its finances well, so that business objectives such as Profit can be achieved

Answer 35

- Is the part of the business that manages the relationship between the Employees and the business - Having skilled Employees that are motivated and performing at a high level, the business is then able to achieve their objectives

Answer 36

- Is the area of the business that is responsible for promoting the business and its products, and to sell them to potential Customers - This area is important to achieve Business Objectives such as Profit, Sales and Market Share

Answer 37

- Is the area of the business that is responsible for implementing and maintaining the business's technologies - Technology can improve productivity, communication and many other areas of the business

Answer 38

Is the behaviour and attitudes of the Manager when making decisions and communicating with Employees

Answer 39

- Autocratic - Persuasive - Consultative - Participative - Laissez-Faire

Answer 40

Is where the Manager tells the Employees what decisions have been made

Answer 41

- Management makes decisions without Employee input - Uses One-way communication - Provides clear and direct communication to Employees

Answer 42

- Fast decisions are made - Clear directions are given to the Employees - Employees are clear of their role in the business Control is centralised at top management level, so time is used efficiently and problems are dealt with quickly, because there is no discussion or consultation

Answer 43

- Ideas are not encouraged, which can result in low staff morale - Employee development lacks due to them having no role in decision-making - There can be poor relationships between Management and Employees - Smaller pool of ideas - An ‘us and them’ mentality may develop because of the lack of employee input - When no responsibility is given to lower level staff, Job Satisfaction decreases. This impacts on issues such as Absenteeism and Staff Turnover

Answer 44

- When time is lacking and decisions need to be made quickly - When Employees lack experience and knowledge - Simple tasks need to be performed

Answer 45

Is where the Manager makes all of the decisions and tries to convince the Employees to complete the tasks their way

Answer 46

The Manager makes all the decisions without Employee input - Uses One-Way Communication - Employees are given more information to understand why a decision has been made

Answer 47

- Fast decisions are made - The Manager can gain support by providing more information to the Employees - Employees can feel more valued - The instructions and explanations remain clear and constant.

Answer 48

- No Employee input - Possibility for poor job satisfaction - Attitudes and trust remain negative - Employees can become frustrated as their ideas are not heard - Communication is poor and limited

Answer 49

- When time is important and decisions need to be made quickly - When Employees lack experience and knowledge - Simple tasks need to be performed

Answer 50

Is where the Manager consults the Employees and seeks feedback before making decisions

Answer 51

- Uses Two-Way Communication - Manager makes the final decisions - Discussions are encouraged

Answer 52

- Employees often take more interest as they are more involved - Improved job satisfaction - Improves confidence in Employees - Asking for suggestions from employees allows for a greater variety of ideas and should improve the quality of management decisions - When decisions are discussed and fine-tuned before implementation, tasks are completed more efficiently and with better results

Answer 53

- More time-consuming - Some ideas will be overlooked, which can cause conflict and/or resentment - Employees may not have the experience or knowledge to contribute - Some issues to be decided on are simply not suitable for a widespread consultation process. If the process is not consistent with each decision made, staff can become uncertain and confused about their role

Answer 54

- When there is time available for gathering feedback - When employees have experience and knowledge that the Manager can use to make a more informed decision - More complex tasks need to be performed

Answer 55

Is where the Manager unites with their Employees and make decisions together

Answer 56

- Uses Two-Way Communication - Employees are able to make decisions - Information is shared among Employees

Answer 57

- High level of trust - Larger pool of ideas - Strong relationships between the Manager and the Employee - High motivation - Employees are more receptive to change - Employees develop more skills and experience

Answer 58

- Time-consuming - Conflicts can arise due to disagreements on the best decision - There is more time spent on forming decisions and less time completing work - The role of the Manager may be undermined - Not all Employees may not want to contribute

Answer 59

- When there is enough time to discuss decisions - There are experienced and knowledgeable Employees - When problem-solving is required or more complex tasks need to be performed

Answer 60

Is where the Manager gives the Employees total responsibility and control of operations

Answer 61

- Uses Two-Way Communication - Employees are empowered to make decisions - The Manager is only involved is asked or to set certain parameters

Answer 62

- Employees feel a sense of ownership - There is a high level of motivation for Employees - There is encouragement for creativity - Communication is completely open - Teamwork is often encouraged

Answer 63

- Could lead to a total loss of control by Management - Could lead to a possible misuse of resources - Can cause conflict among workers - The overall Business Objectives could become lost

Answer 64

- Can be appropriate when decisions need to be made fast or where time is not an issue - There are highly skilled Employees that can be trusted to take control - The task involves high creativity

Answer 65

The abilities that Managers use to achieve Business Objectives

Answer 66

- Communicating - Delegating - Planning - Leading - Decision-Making - Interpersonal

Answer 67

Is the exchanging of information between people and then listen for feedback. This can be verbal or non-verbal

Answer 68

- Managers use the communicating skill when explaining a vision, outlining possible changes to the business, or simply to let Staff know what is expected of them - A manager may also need to answer questions from Staff when introducing a new policy, or listen to feedback from other Stakeholders. Communication is fundamental to almost everything that occurs in a business

Answer 69

- Communication skills can lead to conflict as Employees may use communication to agree or disagree with each other and with Management. This can lead to resentment and tension, with the possible outcome of tasks not being completed - Sometimes the positive relationships that are formed as a result of communication become a distraction and can also reduce productivity - Communication can be time consuming and, at times, there can be too much of it, resulting in information overload

Answer 70

Is the process where authority and responsibility is pass down from the Manager to an Employee to carry out specific activities

Answer 71

- Delegation is an appropriate skill to use in order to manage time effectively as delegation frees up time for Managers to focus upon long term planning - Delegation can provide job training and skill development opportunities for employees and increased job satisfaction - Delegation can be used to build trust and a feeling of mutual understanding between the subordinate Employee and Manager

Answer 72

- Delegation would not be suitable when it involves major strategic planning or high risk and high cost decisions as these are important jobs that is best left for Management - Another weakness of delegating tasks is that the subordinate employee may misuse their new power

Answer 73

Is the ability to set out Business Objectives in detail and decide the methods or strategies to achieve them

Answer 74

- A Manager using the planning skill gives the business purpose and direction. Having clear objectives and strategies creates unity and encourages motivation, as Employees are likely to feel that they have a reason for working for the business - Planning reduces risk and uncertainty, and should result in resources being used efficiently

Answer 75

- Planning can be expensive - Planning can be time-consuming - Opportunities can be lost while managers are planning and innovation or creativity can be hindered because everything needs to be planned

Answer 76

Is the ability of a Manager to influence and motivate their Employees towards the achievement of Business Objectives

Answer 77

Is the ability to identify the options available and select the most appropriate course of action from a range of alternatives

Answer 78

- A Manager using the Decision-Making skill may be able to make decisions quickly which is especially important if the business is facing an emergency or crisis - Making decisions within a group of team has the potential to collect more ideas and knowledge, which can result in better decisions and more effective implementation

Answer 79

- Group Decision-Making may not suit all situations and it can be very time consuming since consensus is needed - In the case of an emergency or a crisis requiring immediate action, an individual may be required to make a hasty decision which may not be the best decision

Answer 80

Is the ability to deal with people and build positive relationships with Employees

Answer 81

- Interpersonal skills can be used to inspire and influence Employees whilst overcoming conflict, creating a workplace where people respect each other and work well together - Ultimately, the use of interpersonal skills is likely to lead to greater Staff Morale and higher productivity

Answer 82

- It can take a long time for a Manager to learn and make use of Interpersonal Skills - It is also possible some Managers will misuse their understanding of Interpersonal Skills and utilise them for their own gain, using these skills to manipulate other people - Managers using Interpersonal Skills may be prone to making emotional decisions, rather than relying on factual information or logic

Answer 83

The type of Management Style that a Manager selects will determine the range and degree of Skills they use. For example, an Autocratic Manager uses One-Way Communication and Centralised Decision-Making

Answer 84

Is the shared values, ideas, beliefs and expectations of the people within the business

Answer 85

- Official Corporate Culture | - Real Corporate Culture

Answer 86

Is the values and beliefs the Company is trying to convey to the public. It can be seen in official documents such as policies or in slogans and logos

Answer 87

Is he unwritten or informal rules that the people within the business have. It can be seen in areas such as the way that Staff dress and, how the Employees treat each other and Customers

Answer 88

- Values - Symbols - Heroes - Rituals

Answer 89

Is the business's shared beliefs

Answer 90

Is the events or objects that are used to represent something the business believes to be important

Answer 91

Refers to the business's successful Employees who reflect its values and therefore act as an example for others

Answer 92

Is the events, such as social gatherings that help develop a sense of belonging among Employees who work in small teams

Answer 93

- Management can provide of Corporate Culture in action (leading by example) - Communicating the desired values - Training in line with the desired Culture - Recognising and rewarding Employees that demonstrate the desired values

Unit 3: Area of Study 1 - Business Foundations Flashcards

(117 cards)