Theme 1

Describe the paternalistic leadership style

Leader consults other staff members but they make the final decision. Creates loyalty and morale, limits empowerment for employees

Describe the democratic leadership style

Leader involves the team in decision making. Good for motivation and creative ideas, however slow decision making and risk of disagreement

Describe the autocratic leadership style

They give orders without consultation. Quick decision making but low motivation

Describe laissez-faire leadership style

-leader allows the group members to make decisions

-this is utilized when group members are productive

-work output by staff is usually low in this situation.

-this style is to be used when group members are trusted and confident in the task at hand

What is the difference between a manager and a leader?

Leaders focus on motivation, achieving the business' aims; managers control day-to-day operations

What does a centralised and decentralised structure mean?

Centralised - decision making is done by the top management

Decentralised - decision making delegated to lower down staff

What is the chain of command in a business?

The reporting system from the top to the bottom --> tall structures have a long chain of command

Name some methods of recruitment

Media advertising

Job centres

Firm's own website

Recruitment agencies

Give pros and cons of internal recruitment

Pros:

Quicker and cheaper than external

Promotion opportunities can motivate employees

Less induction costs

Cons:

Less inovation

Could de-motivate workers who didnt get the role

What is a person specification?

The required skills, qualifications and personality for a vacant job

Define recruitment (selection)

Filling job vacancies by defining a job, advertising the job and selecting the best applicants to fill it

What are 2 ways of empowering employees?

Delegation - passing down authority to a lower "ranking" staff member

Consultation - asking for views of colleagues and taking them into your decision making process

What some financial reward systems?

Piecework - getting paid how by how many units are produced

Commission - earning extra income based on the sales you make

Profit share - sharing profits among employees

Performance related pay(PRP) - targets are set, those who exceed get bonuses

What did Herzberg believe about motivation?

Hygiene factors - minimum requirements (pay, job security etc)

Motivators - motivating staff (promotion, achievements)

What are Maslow's heirachy of needs?

What did Mayo believe about motivation?

Workers are motivated by social needs, such as good relationships with bosses and feeling valued

What did Taylor believe about motivation?

Workers are primarily motivated by money. Work should be broken down into small more managable tasks to increase productivity. Workers should get payed by piece rate, not a fixed wage

Describe the "matrix" organisational structure for a business

Employees have multiple bosses, as they are involved in different departments. Can improve communication between departments but can lead to slow decisiin making

Describe the "flat" organisational structure for a business

Large span of control allows for speedy vertical communication

Describe the "tall" organisational structure for a business

Lots of layers of management, each managing few people. Narrow span of control, good motivation

What is a trade union?

An organisation employees pay to join in order to gain more power and security at work

How can a firm have a flexible workforce?

Multi skilled workers - workers can carry out a variety of tasks

Part time / temporary workers

Working from home

What is public relations (PR)?

An attempt to better the consumer's image of a product without media advertising

What are the "below the line" methods of promotion?

Sales promotion

Direct mail

Personal selling

Sponsorships

Public relations

What is the "above the line" method of promotion?

Advertising

What is emotional branding?

When companies develop strong emotional connections with customers by appealing to values or beliefs

What is the Boston Matrix?

A model that shows a firm its products' market share and the growth of the markets in order to aid marketing strategies

What are the 4 groups in the Boston Matrix?

Problem child (?) - low market share in a fast growing market

Star - high market share in a fast growing market

Cash cow - high market share in a slow growing market

Dogs - low market share in a slow/stable growing market

What is an extension strategy?

The actions a business does to prevent a product entering the decline stage

Why are product life cycles important?

They help businesses plan their marketing activities for a product

What are the stages of the product life cycle

Research and development

Introduction

Growth

Maturity

Decline

What are the types of distribution channels? Explain them

2 stage (Direct) = producer --> consumer

3 stage (Retailing) = producer --> retailer --> consumer

4 stage (Wholesaling) = producer --> wholesaler --> retailer --> consumer

What is distribution (place)?

The movement of goods from producer to consumer

What is an opportunity cost?

The cost of missing out on something when making a decision

What is a social enterprise?

A business thats main objective is to benefit society or the environment

What are the pros and cons of forming a limited company?

Pros:

Limited liability

Wider range of borrowing options

Cons:

Have to make financial information publicly available

Limited companies have to follow more expensive rules than unlimited liability

Describe what is meant by a partnership

When 2 or more people start a business without forming a comapany (like a sole trader). Unlimited liability and split 50/50 even if owners put in different effort

Describe what is meant by a sole trader

A business that only has one individual owner. Has unlimited liability and cannot use share capital. Hard to finance

Name 3 common business objectives

Survival

Profit maximisation

Sales maximisation

Market share

Minimise costs

Employee welfare

Social objectives

What is a business objective?

A target set by business owners for the business to achieve by a specified date

What are the factors that determine the appropriate pricing strategy?

Product differentiation

Strength of the brand

Amount of competition

PED

Stage in product life cycle

Costs

What are the pricing strategies for existing products?

Competitive

Predatory

Cost-plus

Physchological

Discrimination

What is cost-plus pricing?

A business calculates the production cost for a product then adds a desired markup to make a profit

What are the 2 types of pricing strategies for new products? Explain them

Penetration = Pricing much lower than existing similar products to gain market share

Skimming = At the start price is set high, price is lowered to find the optimal demand

Name 2 types of promotion for short term sales

Buy one get one free (BOGOF)

Seasonal price promotion