business functions and the activitues if th business

gradw 10 chapter 2 term 1

what are the three levels of managment

top level

middle level

lower level

what does the top level of managment do

The top level of management is responsible for setting the overall direction and vision of the organization. They make strategic decisions, allocate resources, and ensure that the company's goals align with its mission.

what is the middle level of managment responsible for

The middle level of management is responsible for implementing the strategies and policies set by top management. They coordinate between the top and lower levels, manage departmental functions, and ensure effective communication within the organization.

what is the lower level of management responsible for

The lower level of management is responsible for overseeing day-to-day operations and managing frontline employees. They implement the plans set by middle management and ensure tasks are completed efficiently.

what are the managment tasks

• planning

• organising

• leading

• controlling

• risk managment

factors that influnece organisational structure

• the size of the company

• techology

• resources

• strategic goals of the business

what are the types of organisational structure

• functional

• project

• matrix structures

what is the functional structure

employees are grouped into departments based on their specific skills and functions, like marketing, finance, production, and human resources, with each department reporting to a manager specializing in that area

what is the project structure

a system within a company that outlines how different teams and individuals are organized and assigned roles and responsibilities specifically for a particular project

what is the matrix structure

an organizational structure where employees report to multiple managers, typically both a functional manager within their department and a project manager for specific projects

what is the admisinistration function

the part of a business that manages the overall organization, including tasks like information management, office practices, communication, record-keeping, and ensuring smooth operations across different departments

what are the functions of the administration function

• managment of info

• handling of info

• office practice

• infotmation technology

what is the financila funtion

the part of a business that manages all aspects of its money, including earning revenue, controlling expenses, raising capital, and analyzing financial data to ensure the company's financial stability and profitability 

types of financin

• bank loans

• bank overdrafts

• asset based loans

• grants

• recievable finance

• angle funding

• venture capital

bank loans

money that the business borrows from the bank

bank overdrafts

a facility that allows a business to withdraw money from their account even when they don't have enough funds

asset based loans

a business financing method that uses an asset owned by a business as security against a business loan.

grants

a sum of money given by a government or organization to a business, usually for a specific purpose like starting up a new venture, research and development, or supporting a community initiative, which does not need to be repaid

receivable finance

a trade finance method businesses can use to receive funding matching the amounts owed to it by its customers in outstanding invoices

angle funding

a type of investment where a wealthy individual, known as an "angel investor," provides early-stage funding to a new business (startup) in exchange for a share of the company's ownership

venture capital

money invested in a new, small business (often considered a startup) with high growth potential, where investors take on a significant risk in exchange for the possibility of a large return if the business succeeds

types of budgets

• capital budget

• cash budget

• investments

types of capital

• working

• own

• borrowed

• fixed

fixed vs working capital

"fixed capital" refers to the money invested in long-term assets like buildings, machinery, and equipment that are not readily converted to cash, while "working capital" is the money used for day-to-day operations like buying raw materials, paying salaries, and covering short-term expenses, essentially the "operating cash" needed to run a business smoothly. 

owned vs borrowed capital

owned capital" refers to the money invested in a business by the owner themselves, while "borrowed capital" is money that the business has obtained through loans from banks or other lenders

what is the purchasing function

the department within a business responsible for acquiring the necessary goods and services from suppliers, including identifying needs, researching options, negotiating prices, and managing deliveries to ensure the company has the stock it needs to operate effectively

purchasing procedure

• determine the need for the product

• determine the price

• chose a suplier

• place an order

• recive order

• pay supplier

• distruibute stock

• complte the order

importance of stock control

allows a business to efficiently manage its inventory levels, ensuring they have the right amount of stock on hand to meet customer demand while minimizing costs associated with overstocking or running out of products, ultimately maximizing profits and maintaining customer satisfaction

Nationl credit act (NCA)

• To promote a fair and non-discriminatory marketplace for credit

• To regulate consumer credit

• To improve consumer information standards

• To prohibit unfair credit and marketing practices

• To promote responsible credit granting and use

• To prohibit reckless credit granting

• To provide for debt re-organization in cases of over-indebtedness

positives of NCA

• consumer protection

• debt review

• credit worthiness

• fair credit access

• national credit regulator (NCR)

negatives of NCA

• forced to budget

• loss of sales

• limited stock

• longer to purchase goods

• must sell quality products

Consumer protection act (CPA)

a law designed to safeguard consumers by regulating business practices, ensuring fair trade, and protecting them against misleading advertising, unfair terms and conditions, and defective products

positives of CPA

• businesses are protected

• gain consumer loyalty

• resolve disputes

• businesses build a good image

negatives of CPA

• confidential info is avalibale

• penalties are high

• discole more info

• staff need to be trained

public relations

the practice of managing a company's image and reputation by building positive relationships with its stakeholders, including customers, employees, media, and the community, aiming to create a favorable public perception of the business through communication strategies and actions

methods of carrying our public relations

• media

• direct contact

• brocheurs

• exhibitations

• social responsibility

• transit advertising

• use of telephone