Business 3.2

What is autocratic leadership?

- Makes all decisions themselves and tells them what is going to happen

- Doesn't ask for feedback

What is paternalistic leadership?

- Makes decisions

- They try to convince their team that their was of thinking is the best way.

What is democratic leadership?

- Presents problem to the team

- Asks for feedback / ideas about how the problem should be solved

- Takes the ideas that has the most votes

if decisions doesn't work they'll still remain accountable

What is laissez-faire leadership?

- Laid back

- Team makes all of the decisions

- Very little input from the leader

What is situational leadership?

- Changes their leadership style to fit the situation they're dealing with

Leadership vs. Management?

Leadership:

- Influences / motivates people

- Contributes to organisational success

- Organised

Management:

- Sets work / goals (makes decisions)

- Organised

-Directs people

Definition of tactical decisions?

- Short terms

- Easy to reverse

- Fewer recourses involved

- Usually taken by junior management

Definition of Hunch?

- Based on intuition and experience

Definition of scientific decisions?

- Based on data and analysis

- Uses logical, rational and systematic approach to decision making

What is an external environment?

- an environment in which business operate but have no control over

What are some examples for external environment?

- competitive influences

- political changes

- economy

What is ethics? +examples

- what is considered to be morally right

- charities

-environment

Definition of degree of risk. +examples

- what can be risky to the business

-intuitive decisions

- money being invested

Definition of recourse constraints.

- smaller businesses might have less recourses than a bigger one

e.g. money

What is missions and objectives?

- goals and objectives set for a business

- goal that is set to achieve a mission

What is a stakeholder?

- anyone that has an interest in a business

What are some examples of stakeholders?

- competitors

-employees / managers

-shareholders

-customers

-local community

What are primary stakeholders?

- individuals / groups that are directly affected by the particular businesses activity

What are secondary stakeholders?

- individuals / groups that don't have direct functional and financial relationships with the business

What are creditors

- anyone a business owes money to

What are some internal influences for stakeholders?

- business objectives

- management and leadership styles

- size and ownership of a business

What are some external influences for stakeholders?

- market conditions (competitors)

- power of stakeholder groups

- government polices