Business exam revision

business objective

a business objective is a specific goal the business wants to achieve within a specific period of time

profit

Profit is calculated by taking the total revenues and subtracting total expenses.

increased market share

Market share is a business’s percentage of total sales within an industry.

to fulfill a market need

Seeks to provide a good or service to the market that is currently not being provided or not adequately being provided by other businesses

to fulfill a social need

Is where a business focuses on improving society and the environment through their business activities.

meeting shareholder expectation

In exchange for their investment, shareholders expect to receive dividends, make capital gains and perhaps have voting rights and influence regarding the businesses direction.

to improve efficiency

Efficiency is how productively a business uses its resources when producing a good or service

to improve effectiveness

Effectiveness is the extent to which a business achieves its stated objectives.

stakeholders

people who hold a vested interest within the business

examples of stakeholders

owner, manager, employee, customer, supplier, general community

management styles

A management style is the manner and approach used to provide direction, implement plans, lead and motivate people.\

centralized vs decentralized decision making

Centralised Decision Making – the manager makes the final decision

Decentralised Decision Making – decisions are split up amongst a larger group

autocratic management

An autocratic management style involves a manager making decisions and directing employees without any input from them.

persuasive management

A persuasive management style involves a manager making decisions and communicating the reasons for those decisions to employees without their input.

consultative management

A consultative manager will seek feedback and input from other people before deciding; however, the decision will still ultimately rest with the manager.

participative management

A participative management style involves a manager sharing information with employees so that employees can participate in decision-making.

laissez faire management

A laissez-faire management style involves a manager communicating business objectives to employees and giving them freedom to make decisions independently.