nit 1 - 10

Quality

is meeting customer expectations and fit for purpose

The important of quality

\- helps create customer loyalty \n - helps prolong product life cycle \n - reduces cost of customer complaint : replacing defective product and loss

Quality control \n

 is based on inspection or checking, used for the completed product

quality control method

\+ prevention : quality should be designed into a product \n + inspection: it involves high costs for technically qualified inspectors to check final product \n + correction and improvement : it is not only correct faulty products, but also correct the process that caused the faulty. This will improve quality in the future

impact of quality control

\+ reduce worker responsibility for quality because inspectors have authority for checking product => workers will not feel that checking product is part of their task

\+ some faulty product may be passed because checking quality product just take place at the end of process 

Quality assurance \n

is based on setting agreed quality standards at all stages of production to ensure that customers’ satisfaction is achieved. \n

quality insurance method 

\+ focusing and aiming for zero faulty, so reducing the chances of faulty products being made \n + checking components, materials and services bought into the business at their point of arrival, and not at the end of the production process \n

quality insurance impact

\+ everyone is responsible for quality - this can be form a job enrichment \n + worker motivation is increased when employees are responsible for self-checking products and services and being involved in efforts to improve quality

pros and cons of quality control

Pros : tries to eliminate faults or errors before the customers receives the product or service ; less training required for the workers

Cons : expensive as employees need to be paid for check the product or service ; identifies the fault but does not find why the fault  has occurred so it is hard to remove problem moreover it can make costs increased if product to be scrapped or reworked or service repeated

pros and cons of quality assurance

Pros : tries to eliminate faulty and error before the customers receive the product or service

Cons: expensive to train employee to check product and service, relies on employees following instruction of standards set

Total quality management (TQM)

is the continuous improvement of products and processes by focusing on quality at each stage of production to get right first time and not have any defects.

It ensures that both employees and customers will be satisfied. Workers are encouraged to suggest to suggest new ideas to reduce waste and ensure Zero defects



\

pros and cons of TQM

* Pros
* Eliminates all faults or errors before the customer receives service and product
* No customer complaints and so brand image is improved => leading to higher sales
* Cons
* Expensive to train employees to check the product and service
* Relies on employees following TQM ideology

Marketing

is a management process which identifies customer wants, anticipates their future wants and then goes about satisfying them profitably.

=> marketing helps a business to increase its sale revenue, profit, market share.

Markets

where buyers and sellers meet to engage in exchange.

Market segmentation

* the market is divided up into groups of consumers who have similar needs by : income, gender, use of product, age. Region, lifestyle,…

=> not aim sale one product to the whole market => different product for different segments

pros and cons of market segmentation

* Pros
* mall firm that are unable to compete in the whole market are able to specialize 1 or 2 market segments
* Avoid wasting money on trying to sell product to the whole market
* Cons
* Cost of research and development might be high
* If consumers in those segments change their purchasing habits, excessive specialization could lead to problems

market segmentation vs market segment

* Market segmentation is the process and market segment if the result
* In order to create market segmentation, the business needs to go through the process of market segment

Marketing mix

a range of tactical decisions for marketing a product, it helps business decide the appropriate marketing mix to sell its product profitably.

4Ps

* Product : consumers require the right product, it may include existing product, update for an existing product or a newly developed one
* Price : it is also an important factor. the price is set low, it can make customer lose confidence in the product’s quality and the price is set high, many customer will be unable or not willing to buy them.
* Promotion : telling them the product’s availability and convincing them
* Place : refers how the product is distributed to the customer through distribution channels

product life cycle - introduction

when the product has just been launched after development and testing. Sales are often low to begin and then may increase quite slowly

product life cycle - growth

when the product is effectively promoted and well received by customers.

product life cycle - Maturity or saturation

sales fail to grow, but they do not decline significantly either

product life cycle - Decline

during this phase, sales will decline steadily. Either no extension strategy has been tried or it has not worked or else the product is so obsolete that the only option is replacement

* Introduction

* Price : may be high or low compared to the competitor’s price
* Promotion : high levels of informative advertising
* Place : in restricted outlets, if using skimming price, high-class may be possible
* Product : basic model with few variations

* Growth

* Price : if successful, an initial penetration pricing could now lead to rising price
* Promotion : branding and encouraging customer to repeat purchase 
* Place : growing number of outlets
* Product : improvement and development

* Maturity 

* Price : stay at competitive levels when competitors enter the market
* Promotion : focus on brand image to make different from the competitors
* Place : highest geographical spread possible, new distribution channels
* Product : new models, colors, accessories

* Decline

* Price : set lower, but in niche market, price can raise
* Promotion : inform of lower price
* Place : unprofitable outlets for the product are eliminated
* Product : slowly withdraw product from certain market and prepare to launched new products

Brand name 

the unique name of a product which distinguishes it from other brands and gives the brand an identity of its own

Brand loyalty 

when customers keep buying a particular brand instead of a competitor’s brand

Brand image 

the image or identity given to a product which makes it different to its competitors’ brands

Product life cycle

the stage a product will pass through from its introduction, growth, maturity and finally declines

Penetration pricing 

when the price it set lower than the competitors’ prices in order to be able to enter a new market

Price skimming

a high price is set for a new product on the market

Penetration pricing vs market skimming

* Penetration : firms tend to use penetration pricing to gain a large market share, if successful, the price could slowly increase during the growth stage of product life cycle 
* Market skimming : aiming to maximize short-run profits before competitors enter the market with a similar product.

Market leader

the leader of the brands’ market. They expand their markets share by developing new customers, more customers and more usage. 

Expand total market

this can be done by attracting new customers, identifying new uses for a product or including customers to use more of the product

Expand share

this is done through continuous innovation

Market follower 

effectively copies the market leader while positioning its brand slightly differently 

Clone

this is where a follower imitates the market leader in advertising, products and distribution

Imitate

an imitator copies some things from the leader but maintains an element of differentiation

Adapt

slightly change and improves its products and predominately sell them in a different market

market niche

* They intend to dominate specific segments. These are generally smaller companies that can not effectively compete against market leaders but can reach their business goals through focusing on differentiating factors

* Some common parameters to define a niche 

* Demographics : age, gender, occupation, income, education
* Price : luxury, moderate, discount
* Level of quality : premium, economical, handmade

management

the process used to accomplish organizational goals through planning, organizing, leading and controlling people and other organizational resources

Manager

An individual who is in charge of a certain group off tasks, or a certain area or department of a business.

Chief Executive Officer

The most senior manager responsible for the overall performance and success of a company.

Planning

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.

Organizing

A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve theorganization's goals and objectives.

Leading

Creating a vision for the organization and guiding, training, coaching, and motivating others to work effectively to achievethe organization's goals and objectives.

Controlling

A management function that involves establishing clear standards to determine whether or not an organizationis progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not.

Director

An appointed or elected member of the board of directors of a company who, with other directors, has theresponsibility for determining and implementing the company's policy. They report to the CEO.

Supervisors

These are appointed by management to watch over the work of others. This is usually not a decision-making role.They have responsibility for leading and controlling a team of people in working towards pre-set goals.

managers have to

good at communication and motivation

role of managers - planning

Setting aims and targets for the organization. E.g. to increase market share by 2%.

role of managers - organizing

Managing people and resources effectively towards achieving the aims of the organization; Making sure staff do not perform overlapping task.

role of managers - coordinating

Bringing people and departments together so that they work towards common aims.

role of managers - commanding

Managers are more like to guide, lead and supervise people than just tell them what to do.

role of managers - controlling

Checking that the original aims are being met and appraising workers/staff.

managers vs leaders - managers

* Carry out 4 functions: planning, organizing, leading and controlling
* Have a formal title
* Look at the details, welcome stability, are good at supervising, and work well as team members

managers vs leaders - leaders

- Do not hold a management position- Have no formal, tangible power- Look at the big picture, welcome change, are good at motivating and influencing, and work well alone (or at the head of teams).

Motivation

factors that influence the behavior of workers towards achieving business goals; can be increased by: monetary rewards; non-monetary rewards;introducing ways to give job satisfaction.

Job satisfaction

The enjoyment a worker gets from feeling that they have done a good job. There are three ways to motivate workers to be more committed to theirjob and work more effectively:

job rotation

job enlargement

job enrichment

Theory X

The average person does not like work. Workers must be constantly supervised so they will work. Motivation is from external factors, e.g. payschemes where the workers are paid more for increased output.

Theory Y

The average person is motivated by internal factors. To motivate workers, you need to find ways to help workers take an interest in their work, e.g.give rewards, incentives.

Maslow's hierarchy of needs

A theory of motivation which states that five categories of human needs dictate an individual's behavior. Those needs are physiological needs, safetyneeds, love and belonging needs, esteem needs, and self-actualization needs.

Frederick Herzberg's motivation theory

Humans have two sets of needs: one is for the basic needs, which he called hygiene factors or needs, and the second is for a human being to be able to grow psychologically, which he called motivational needs or motivators.

Hygiene factors

Factors that must be present in the workplace to prevent job dissatisfaction.

theory x vs theory y - theory x

- Presents a pessimistic view of employees' nature and behaviour at work.- The average employee doesn't like work and will do anything to avoid it.- Theory X works on the idea of punishing people to keep the work going.

theory x vs theory y - theory y

- Presents an optimistic view of the employees' nature and behaviour at work.- Employees take responsibility of their actions and work towards achieving the goals of the organization without much supervision.- In theory Y, promotions, rewards, and recognition play an important part and these keep employees motivated to work hard towards achieving goals of the organisation.

Implications of Theory X and Theory Y - theory x

Quite a few organizations use Theory X today. Theory X encourages use of tight control and supervision. It implies that employees are reluctant to organizational changes. Thus, it does notencourage innovation.

Implications of Theory X and Theory Y - theory y

• Many organizations are using Theory Y techniques. Theory Y implies that the managers should createand encourage a work environment which provides opportunities to employees to take initiative andself- direction. Employees should be given opportunities to contribute to organizational well-being.

implications of maslow's hierarchy of needs theory for managers - physiological needs

• the managers should give employees appropriate salaries to purchase the basic necessities oflife. Breaks and eating opportunities should be given to employees.

implications of maslow's hierarchy of needs theory for managers - safety needs

• the managers should provide the employees job security, safe and hygienic work environment,and retirement benefits so as to retain them.

implications of maslow's hierarchy of needs theory for managers - social needs

the management should encourage teamwork and organize social events.

implications of maslow's hierarchy of needs theory for managers - esteem needs

• : the managers can appreciate and reward employees on accomplishing and exceeding their targets. The management can give the deserved employee higher job rank/position in theorganization.

implications of maslow's hierarchy of needs theory for managers - self-actualization needs

• the managers can give the employees challenging jobs in which the employees' skills and competencies are fully utilized. Moreover, growth opportunities can be given to them sothat they can reach the peak.

limitations of maslow's approach

• Not everyone has the same needs, as is assumed by the hierarchy.

• In practice it can be very difficult to identify the degree to which each need has been met and which level a worker is on.

Herzberg and the two-factor theory - job satisfaction

results from five main factors: achievement, recognition for achievement, the work itself, responsibility and advancement. He called these factors the motivators

Herzberg and the two-factor theory - job dissatisfaction

resulted from five main factors: company policy and administration, supervision, salary,relationships with others and working conditions. He termed these hygiene factors.

job enrichment

3 main features : complete units of work, feedback on performance, a range of tasks

Implications of Two-Factor Theory

* the managers must stress upon guaranteeing the adequacy of the hygiene factors to avoid employee dissatisfaction
* \

Organizational structure

The levels of management and division of responsibilities within an organization.

Hierarchy

The levels of management in any organization, from the highest to the lowest. A level of hierarchy refers to managers/supervisors, other employees who are given a similar level of responsibility in an organization

Chain of Command

The structure in an organization which allows instructions to be passed down from senior management to lower levels ofmanagement

span of control

The number of subordinates working directly under a manager.

Line managers

People who have responsibility for people below them in the hierarchy of an organization.

Supervisors - unit 3

Junior managers who have direct control over the employees below them in the organizational structure.

staff managers

Specialists who provide support, information and assistance to line managers.

Delegation

Giving a subordinate the authority to perform a particular task.

Decentralization

Taking decision away from the centre of an organization- way from the Head Office.

functional structure

splits an organisation into departments based on their major area of responsibility. The most common departments in a business are marketing, production (or operations), finance and human resources. Each of these departments is led by a functional manager.

pros and cons of functional structure

pros

• Allows employees to focus on their role

• Encourages specialization

cons

* Can create silos within an organization
* • Hampers interdepartmental communication

\

silos ( cons of functional structure)

A functional or divisional unit that operates by its own rules and guidelines and does not openly share information with other units

hierarchical structure

there are different layers of the organisation with fewer and fewer people at each higher level. In general terms, this structure is often presented as a pyramid.

The main features of a hierarchical structure are

levels of hierarchy, chain of command and span of control.

Levels of hierarchy

* Each level in the hierarchy represents a grade or rank of staff.
* \

Spans of control

Spans of control can be either wide (with a manager directly responsible for many subordinates) or narrow (a manager has directresponsibility for a few subordinates).

chain of command

* Instructions are passed down the hierarchy. Information, for example about sales or output levels, is sent upwards.
* \

pros and cons of hierarchical structure

**Pros**

• Better defines levels of authority and responsibility

• Shows who each person reports to or who to talk to about specific projects

**Cons**

• Can slow down innovation or important changes due to increased bureaucracy• 

• Can make lower-level employees feel like they have less ownership and can’t express their ideas for the company

horizontal or flat org structure

fits companies with few levels between upper management and staff- level employees.