Business Management

Get a 7

Internal Growth

When a business increases the scale of its operations using its own resources.

External growth

When a business increases the scale of its operation by dealing with outside organizations.

Strategic alliance

Two or more businesses seek to form a mutually beneficial affiliation by cooperating in a business venture.

Franchise

Form of business ownership where a person or business buys a license to trade using another firm’s name, logo, brands, and trademarks.

Ansoff matrix

Business tool that helps business managers devise their products and market growth strategies.

Consists of:

• Existing/New markets

• Existing/New products

Globalization

The growing integration and interdependence of the world economies

Multinational Corporation (MNC)

Companies that operate its business in multiple countries

Joint Venture

When two or more businesses decide to split the costs, risks, control, and rewards of a business project.

HR appraisal

the formal process of evaluating assessing how well an employee is doing their job, usually toward a set goal.

Investment Appraisal (State the two types of investment appraisal)

Quantitative methods to measure whether a planned investment is financially worth it.

1. Payback Period…how long it takes to earn back the initial investment

2. Average Rate of Return…the average annual profit as % of the initial cost.

Flat organizational structure

When the authority and power is distributed more evenly among employees and bosses within a company.

There are only a few layers in the organizational hierarchy and hence managers have a wide span of control

Tall organizational structure (Vertical)

There are many layers in the organizational hierarchy and hence managers have a narrower span of control.

Matrix structure

employees are organized by two dimensions at once, so they are under multiple managers.

offshoring

Involves relocating business functions and processes to another country

outsourcing

The act of finding external people or businesses to carry out non-core functions of a business.

Communication

Transfer of information between different people and business organization.

Delayering

A method of improving communication by reducing the number of levels in an organizational hierarchy

Autocratic

Managers and leaders are absolute. There is a clear difference in power between employees and commanders.

Leadership