Business Sectors and Quality Management

Flashcards covering business sectors, environments, quality management, and leadership.

Business sectors

Different categories of business enterprises based on the type of business or production activity conducted.

Extent of control

The degree of control the business has over the specific business environment.

Macro environment

External uncontrollable factors or forces outside the business.

Market environment

Components, elements, or factors immediately outside the business.

Micro environment

The business itself, characterized by all the processes, functions, and factors within the business.

Primary sector

Extracts, exploits, collects or harvests natural resources or raw materials from the earth.

Secondary sector

Focuses on the manufacturing, processing, converting or transforming of natural resources or raw materials into semi-finished or finished products.

Services

An action or performance of intangible activities offered by one party to another.

Tertiary sector

Provides or distributes final products and services to customers.

Quality

The ability of a product or service to satisfy specific needs of consumers.

Quality control

A system that ensures the desired quality is met by inspecting the final product to ensure that it meets the required standards.

Quality assurance

Checks carried out during and after the production process.

Quality management

The process of managing all activities needed to ensure a business produces products or services of consistently high standards.

Quality performance

The total performance of each department measured against the specified standards.

Quality management systems

A framework that a business uses to manage key organizational processes.

Total Quality Management (TQM)

An integrated system/methodology/process applied throughout the organization, which helps to design, produce, or provide quality products or services to customers.

Continuous skills development/Education and training

The commitment of the business to participate in the continuous skills development/education and training of all the employees at all levels within the business.

Total client/customer satisfaction

The ability/commitment of the business to achieve total client/customer satisfaction.

Continuous improvement to processes and systems

The ability/ commitment of the business to pursue/execute/achieve continuous improvement of processes and systems.

Adequate financing and capacity

The ability of the business to provide/ acquire the correct adequate financing and capacity for all operational requirements in the pursuit of implementing TQM effectively.

Monitoring and evaluation of quality processes

The effective implementation of TQM requires monitoring and evaluation of quality processes throughout the entire business.

Quality circles

A group of employees with a variety of skills and experience coming together to solve problems related to quality/to implement improvements.

Standards

The technical specifications or criteria reflected in the level of quality of goods or services.

Leadership styles

Refers to the different methodologies that leaders employ to provide direction and guidance to employees.

Democratic leadership style

Employees are invited to be part of the decision-making process.

Autocratic leadership style

Employees are not involved in the decision-making process.

Laissez-faire/free-reign leadership style

The leader allows employees that are experienced, reliable, and trustworthy to make decisions in pursuit of the organisation’s goals.

Charismatic leadership style

The leader uses charisma and charm to influence employees.

Transactional leadership style

Uses rewards and punishments as incentives to influence the behavior of employees.

Leadership theories

Guide leaders on the different leadership styles that could be adopted.

Situational leadership theory

In this leadership theory, the leader applies different leadership styles depending on different situations.

Transformational/transitional leadership theory

Best used during a period of drastic change in an organization.

Personal attitude

An individual’s emotional, psychological, and physical responses to events that influence their achievements.

Leaders and followers theory

Followers follow the instructions of the leader in this leadership theory.

Investment

The process of saving money for profit.

Investors

The person who saves money with the expectation to make a profit.

Risk

Uncertainty of losses rather than expected profit from an investment.

Interest

The amount of money earned by an investor in return for their investment.

Dividends

A sum of money paid by a company to its shareholders from its profits.

Johannesburg Securities Exchange (JSE)

The market that deals with the buying and selling of shares in listed companies.

Share

Part ownership in a company.

Capital market/securities market

The financial market in which long-term debt securities are bought and sold.

Short term investment

Investing for less than one year.

Long term investment

The duration or period of the investment is more than three years.

Fixed rate

The interest rate remains the same for the duration of the investment period.

Bankruptcy

Refers to a business that is unable to repay its creditors.

Liquidation

Selling the assets of a company to pay creditors.