Business Exams Double Check

Merger vs Aquisitoin:

merger = two business agree to integrate and form a single new organistion acquisition= when one business buys a controlling interest in another, often without mutual consent

strategic alliance vs JV

SA = collaborate, but legally independant

JV = seperate legal entitiy is formed with shared ownership

Merger vs Aquisitoin:

merger = two business agree to integrate and form a single new organistion acquisition= when one business buys a controlling interest in another, often without mutual consent

strategic alliance vs JV

SA = collaborate, but legally independant

JV = seperate legal entitiy is formed with shared ownership

Diseconomies of scale

unit costs increase from inefficienties resulting from growth (internal: poor communication, traffic congestion around industrial areas)

List internal and external economies of scale

internal: advanced machinery to boost productivity, specialist mangers to icnrease efficiency, lower interest rates for larger firms, marketing, bulk buying, risk bearing.

external: imporved infrastrucutre, skilled labour pool, availability of suppliers and distributors

list internal and external diseconomies of scale

internal: poor communication, demotivation from feeling alienated, managerial iniffecies —> slower decision making

external: traffic congestion, increased competition

define globalisation

globalisation is the increasing integration and interdependance of different econommies around the world, particularly through trade, investemnet and the movement of capital and labour.

benefit of MNC on host country:

job creation, transfer of skills and knowledge, new tech may be introducde, increased tax revenue for the government

disadvanatges of MNC for host countries

local business may be outcompeted, environmental harm, profits sent back to home country and not invested locally, poor labour conditions if regulations are weak

Define Race to the bottom

when countries have lower environmental, labour, and tax standards in order to attract MNCs. so to stay competitive, governments may cut corners, which hurts the long term sustainability of workers rights.

reasons a small business might survive in globalistion

personal service, strong local loyalty, niche products, locally tailored services, flexibility, faster decision making,

define cultural exports

products or ideas from one country that spread globally and influence other cultures, such as fashion music or cuisine.

advantages of being a big business

economies of scale, market power, access to finance, brand recognition, can spread risks by expnadning product lines or markets, specialised departments

disadvanatges of being a big business

diseconimies of scalw, slower decicion making, bureaucracy, cultural clashes, harder to adapt to the market

advantages of being small

close customer relationships, flexibility and adpatability, niche market focus, motivated staff, less bureaucracy

disadvantages of being small

limited access to finfnace, higher unit costs, limited market reach,

Define Workforce planning

The strategic process of analysing and forecasting the number of employees and the skills required by a business to meet its future objectives. It ensures the right people are in the right role at the right time.

whats the importance of workforce planning?

1. prevents labour shortages or surplusses

2. succession planning

3. ensures cost-efficiencies and productivity

4. alligns workforce with strategic goals

How might demographic changes affect workforce planning?

• aging population = more retirements —> succession planning

• falling birthrates = future labour shortage —> shift to automation

pros and cons of internal recruitment

cheaper/faster, alr know them

limits new ideas

pros / cons of external recruitment

wider talent pool, new ideas

time consuming and expensive

Explain Taylors Scientific Management theory

idea: workers motivated by only money
Methods: division of labour/standardised tasks + piece rate pay

criticism of taylors SMT

• ignores non financial motivator

• doesnt explain motivation for non repritive jobs

Maslows Hierarchies aaare?

1. physiological (fair wages, access to essential resources)

2. safety (job secuirty)

3. love belonging (teamwork)

4. self esteem (recognition/promotion)

5. self actualisation (personal grwoth)

maslows criticism

• too ideialistic

• not always met in order

• iindividualist vs collectivist (meeting group needs above own? what motivates that?)

Herzberg criticism

• not all jobs (like low skilled jobs) allow motivators

• more responsibility isnt alwasy motivating

• job satisifaction does not mean productivity

Mccleleands acquired needs theory

everyone has three but in different amounts: achievement (goals, recogntiion), affiliation (team belonigng), authority (influence and control)

Deci and Ryans self determinatio theory

autonomy, relatedness (connectiosn with others), competence (mastering and learning newskills)

Adams equity theory

motivation comes from percieved fairness, compare ratio of input and output. if ratio isnt fair = demotivated

vroom’s expectancy theory

all three must be strong for motivation: instrumentaltity (WILL have good outcome) valence (HOW desriebale outcome is) and expectancy (confidence to perform)

Pros and Cons of on the job training

✅ Cost-effective, real-time skills
❌ May disrupt workflow, risk of bad habits from existing employees

pros and cons of off the job training

✅ Specialist knowledge, no distractions
❌ Expensive, not always job-specific

pros and cons of induction training

✅ Integrates employees into culture
❌ Time-consuming if not well-planned

differentiate between job enrichment and job enlargement

enrichment —> Giving more challenging tasks to encourage growth
elargment —> Wider variety of tasks at the same skill level

Define Kaizen

(1) philosphy meaning ‘continous improvement’, it involves all workres

(1) small, regular changes rather than large, radical changes

Define Cradle to Cradle

Cradle to cradle is a sustainable model of production, where products are designed to be recycled and reused in a continous loop to reduce wastage.

It contrasts with the traditional “cradle to grave” where products end up in a landfill

Define Quality Control

(1) the process of inspecting products to make sure they meet the required quality standards

(1) typically happens after production is complete

(1) controlled by one person for checking for faults

Define Quality assurance

(1) Quality is ensured by the entire production team as the entire process is adjusted to ensure quality

(1) ensures quality standards are met throughout the whole process

(1) focuses on preventing mistakes rather than detecting them after production

Define TQM

A culture where all employees are responsible for ensuring quality at every stage of production

It emphaises customer satisfaction and continous improvement

Define Quality Circles

(1) groups of workers who meet regulary to discusss problems in quality and productivity, and solutions

(1) participation is voluntary

Define “zero defects”

(1) a philosphy that strives for no mistakes or flaws in production

(1) it requires high standards, quality checks, and a proactive approach to problem solving

Define “supply chain”

(1) the sequence of processes involved in the distrubtion and production of a good/service

(1) it includes all stages from sourcing raw materials to delivering the final product to customers

define crisis Management

(1) the process of handling and repsonding to a major unpredictable event that threatens to harm an organisation and its stakeholders

(1) it focuses on the immediate response to limit damage of the comapnys image. it is reactive

define contingency planning

contingency planning involves ‘preparing for the worse’. preapring backup strategies for crises that may happen in the future

involves identifying future risks and making plans against them. it is a proactive.

Define vision statement

Outlines the long-term future aspirations of an organisation and the wider impacts it seeks. it is defined direction for strategic planning.

Define mission statement

A brief description of a business’s purpose of existence and its core values. Helps guide decision making so it heads to intended vision.

Define strategic objectives

• long term goals to guid organisation towards vision

• frameword for developing further tactical objectives

• specific measuremable targets that help indicate businesses success

define tactitial objectives

• short term goals to be achieved by particular department in business

• They support strategic objectives and help manage day-to-day operations effectively.