Business Exam Final cards

studied byStudied by 0 people
0.0(0)
get a hint
hint

Name the sectors of industry

1 / 232

encourage image

There's no tags or description

Looks like no one added any tags here yet for you.

233 Terms

1

Name the sectors of industry

primary, secondary, tertiary, quaternary

New cards
2

Describe the primary sector

includes activities that directly extract materials from Earth through agriculture and sometimes by mining, fishing, and forestry

New cards
3

Describe the secondary sector

includes manufacturers that process, transform, and assemble raw materials into useful products, as well as industries that fabricate manufactured goods into finished consumer goods

New cards
4

Describe the Tertiary sector

involves the provision of goods and services to people in exchange for payment, such as retailing, banking, law, education, and government

New cards
5

Describe the Quaternary sector

The Quaternary sector is industries that provide specific information service and offer knowledge and advice. People working in this sector are highly skilled

New cards
6

Name objectives of a third sector organisation

To grow, to spread awareness of their cause, to maximise donations for their cause

New cards
7

Name objectives of a public sector organisation

To provide a good quality service, to benefit the local community, Satisficing

New cards
8

Name objectives of a private sector organisation

To survive, grow, and maximise profits

New cards
9

Explain benefits of outsourcing to a business

Less labour and equipment required

High quality work from outsourced business as it should have greater expertise and specialist equipment

May be cheaper than in house

Need only use service when required

New cards
10

Explain cost of outsourcing to a business

Less control over outsourced work, could increase charge or quality of work.

Risk of losing sensitive information

New cards
11

What is horizontal integration?

This is when two business from the same sector of industry become one business

New cards
12

What is vertical integration?

When two businesses from different sectors of industry become one business

New cards
13

What is lateral integration

When two organisations who produce similar products join together

New cards
14

What is conglomerate integration

When to businesses from completely different markets join together. For example when Microsoft bought Nokia

New cards
15

Methods of organic growth

Launch new products

Open new branches or expand

Introduce e-commerce

Hire more staff

Increase production capacity

New cards
16

What is diversification

When business introduces new products in to its portfolio which cater to different markets. No merge with another business

New cards
17

What are advantages of organic growth

No loss of control as the business is not integrating with others

Selling online means that business can trade 24/7 around the world

Hiring more staff will bring in new ideas to the business to develop new products and increase production

Expand existing premises to cater for mor products can make more sales

Launch new products means businesses can target different markets

Can be financed through internal funds such as retained profits therefore don't have to borrow from a third party

New cards
18

Disadvantages of organic growth

Slower method of growth- shareholders may prefer a more rapid method

Growth may be dependent on the growth of the overall market

New cards
19

Advantages of diversification

Spread risk as business have a wider product portfolio to rely on

Overcome seasonal fluctuations

Provides different income streams form the core business activity

New cards
20

Disadvantages of diversification

May take on business in a market they no nothing about and cause the new product or service to fail

Can cause the company to loose focus impacting their existing products

New cards
21

Advantages of horizontal integration

Competition is reduced

Can dominate the market therefore market share increases

Benefit from economies of scale

Aquire assets of the other firm

New cards
22

Advantages of forward vertical integration

Business can control supply of their products and could decide to not supply to competition

Can increase profits by cutting out the middle man

New cards
23

Disadvantages go horizontal integration

Quality may suffer due to lack of competition

May breach EU competition rules

New cards
24

Disadvantages of forwards and backwards vertical integration

Company may be incapable of managing new activities effectively meaning higher costs

Focussing on new activities can adversely affect core activities

Monopolising market may have legal repercussions

New cards
25

Advantages of backwards vertical integration

Guaranteed and timely supply of stock

No need to pay a supplier their marked up prices so stock is cheaper

Quality of supplies can be strictly controlled

New cards
26

Advantages of lateral integration

Organisations products are related therefore should already have good knowledge of the industry therefore more likely to make a success from the purchase

The firm acquired the assets of the other companies

Provides different income streams from the core business activities so pressed risk if one area is not performing

New cards
27

Advantages of conglomerate integration

Spreads risk

Overcomes seasonal fluctuation

Firm acquires assets of other organisation

Provides different income stream

New cards
28

Disadvantages of conglomerate integration

May take in a business in a market they know nothing about

Can cause the business to lose focus

May become to large and difficult to manage

New cards
29

Advantages of tall structure

Direct chain of command clear division of responsibility and allocation of authority. Therefore each staff member knows their role and who to report to

Leads to stable and more easily controlled organisation

More chances of promotion

Narrow span of control which means managers have more time for planning decision making supervision and supporting subordinates

New cards
30

Features of tall structure

Has many levels of management

Long chain of command where commands flow down from decision makers at the top of the organisation to the workers at the bottom

New cards
31

Disadvantages of tall structure

Each members experience across the organisation as a whole may be limited

Leaders may be autocratic and thus stifle the initiative of subordinates

Communication can be slower therefore decision making can make more time

Managers have few staff to share idea with therefore limited solutions to problems

New cards
32

Feature of flat structure

Shorter chain of command where commands flow down from decision makers at the top of the organisation to workers at the bottom

New cards
33

Advantages of a flat structure

Communication is faster

New cards
34

Effects of increasing managers span of control

Can increase stress

Lead to rash decision making

Can confuse employees on the chain of command

New cards
35

Characteristics of entrepreneurial structure

Used by small organisations. One person usually the owner makes all the important decisions

New cards
36

Describe matrix structure

Normally set up to carry out a specific project like creating a new product

Will consist of different specialist from different functional areas of the business

Once the project is complete employees will return for their functional department

New cards
37

Impact of delayering

Where an organisation decides to restructure by removing levels of management a taller structure becomes flatter.

Ad and disad same as flat structure

New cards
38

What is interdependence of stakeholders

Stakeholder need to work together if the business is to succeed some stakeholder groups rely on other help the achieve their interests.

E.G. managers and employees Managers need employees to perform their best while employees need managers to make good decisions to keep the business profitable and their jobs safe

New cards
39

conflict of interest

Although all stakeholder want a business to succeed they can often conflict in their aims. In other words to stakeholders both can't get what they want

New cards
40

Interest of customers

Good quality products with good value for money

New cards
41

Influence of customers

Choosing to with that organisation rather than a competitor

Bad reviews

New cards
42

Interest of managers

High salary/wages

Business surviving

Job security

Bonuses

Promotion

New cards
43

Influence of managers

Ability to motivate staff

Hire/fire

Make important decisions

New cards
44

Interest of suppliers

Payment on time in full

Loyal customers

New cards
45

Influence of suppliers

Quality of supplies

Price charged

On time with deliveries

New cards
46

Interest of government

Taxes from business

Legislation - NMW

New cards
47

Influence of government

Changing legislation

Emission rates

Choice of vehicles

New cards
48

What is the political fsctor

Government changing or introducing laws which the business must comply with Eg NMW

New cards
49

Impact of political factor

Corporation tax

VAT. 20%

Interest rates

Government bank sets the base rate of interest

New cards
50

Impact of economic factor

High unemployment

Exchange rates

Recession

Inflation

New cards
51

Impact of social factor

Social cultural factors cover changes k. So issues such as fashion of habits eg less people smoking and people caring more about their health

Demographic changes relate to the population eg more pensioners less children per family

New cards
52

Impact of technological factor

Profess in technology has caused some products to become obsolete. Eg typewriters

Failure to computerise a business or make use of e commerce can lead to customers reducing

Offering free wifi

Use of social media

New cards
53

Impact of environmental factor

Weather

Natural disaster

Packaging

New cards
54

Impact of competition factor

The actions of rival business Eg changing prices, starting an advertising campaign

New cards
55

Competition policy

Part of political factor

The aim is to promote competition

Make markets better

And contribute towards improved efficiency in individual markets

And enhanced competitiveness of UK businesses within the EU single market

New cards
56

Methods of being socially responsible

Reducing carbon footprint

Creating new safety measures

Improving working conditions

Recycling

Reducing packaging

Using sustainable materials

New cards
57

Advantages of good CSR

Good reputation

Customers agree with morales

Attract high quality staff

Investors attracted

Government more likely to award grants

New cards
58

Effect of managers in effective decision making

Poorly skilled managers can make bad judgements which impact sales and profit as well as affecting staff morale

New cards
59

Role of a manager

Plan

Organise

Command

Coordinate

Control

Delegate

Motivate

New cards
60

Role of a manager PLAN

Managers will look ahead and set targets for the future

New cards
61

Role of manager. ORGANISE

Managers will ensure that their employees are given appropriate tasks and resources in order to achieve success

New cards
62

Role of managers. Command

Managers will supervise their employees and ensure that they work to a high standard

New cards
63

Role of manager. Coordinate

Managers will ensure that all employees and resources are where they need to be at the right time in order to succeed

New cards
64

Role of manager CONTROL

Managers will regularly check the progress in meeting targets and evaluate on an ongoing basis

New cards
65

Role a manager delegate

Managers will pass some responsibility to employees for example giving them control of a department budget

New cards
66

Role of manager. MOTIVATE

Managers will use a variety of methods both financial and non financial to prompt employees to work hard and achieve the company targets

New cards
67

How to measure success of decisions

Increase in sales

Increases in positive customer reviews

Increased product quality

Increased satisfaction

Better staff morale

New cards
68

What is selection testing

Where organisations arrange for candidates to be assessed on a variety of areas eg IQ. personality

New cards
69

Advantages of testing

Tests are used to provide further information is obtained during an interview. Therefore helps management decide a candidates suitability for a position

Can see how a candidate copes under pressure

Used to allow candidates to demonstrate skills they require for their position

Helps assess the natural abilities of people

New cards
70

What is an assessment centre

Used by firms to see a larger number of candidates doing a number of tasks in different situations

New cards
71

Advantages of using an assessment centre

It allows the business to also watch applicant interact with other during breaks and lunch

Less chance of interviewer bias

Large numbers or candidates can be assessed at one time

Being carried out be experts and specialists

New cards
72

Benefits of workforce planning

  • Gaps in the current workforce can be identified

  • Relevant training can be given to upgrade the skills of existing staff

  • Managers can prepare and plan for changes rather than react to them

  • Avoids overstaffing/the employment of surplus staff

  • Can decrease the organisation's costs through outsourcing and sub-contracting

  • Allows the business to prepare for periods of significant change (e.g. restructuring and growth)

  • Staffing forecasts can be carried out

New cards
73

Advantages of CVs

Contains personal information on the candidate such as skills and experience

Can be used to compare against the person specification

New cards
74

Advantage of interviews

Can ask a series of questions and question the content of the CV

Can assess the applicants personality

Can assess how the applicant reacts under pressure

New cards
75

Describe the purpose of appraisals

Allows the employee to reflect on how ell they are performing and identify area of strength and areas to work on

Provide the opportunity to discuss trading and potential career progression

New cards
76

Advantage of appraisals

Improves communication between management and employees

Employees receive positive feed back for good work increasing their motivation

Employee training needs can be identified allowing them to improve their work

Targets will be set for the employee which motivates them to be be successful

New cards
77

One on one appraisal

A formal meeting between a worker and manager to discuss their performance and decide how their work can be improved

Sometimes called a performance review

New cards
78

Peer to peer appraisal

When the review interview is carried out be a colleague at the same level in the organisation as the employees

New cards
79

360 appraisals

Whoever conducts the appraisals interviews fellow employees supervisors and subordinates about the performance of the employee

New cards
80

Methods of ensuring good employee relations

Trade unions

ACAS

Grievances

Discipline

Dismissal

Absenteeism

New cards
81

Effects of Equality Act 2010

No discrimination

All employees have to be treated equally

New cards
82

Impact of NMW regulation on organisation

Increases costs

Costa increase annually

New cards
83

Name the sources of finance

Bank loan

Debenture

Mortgage

Retained profits

Selling shares

Sell asserts

Venture capitalists

Leasing

Debt factoring

New cards
84

What are retained profits?

Profits kept back from the previous years trading and then reinvested back into the organisation

New cards
85

adv of retained profit

Organisation own money therefore no debt or finance charges are incurred

New cards
86

Disadv of retained profits

Shareholders may not be happy as reduces dividend

New cards
87

What is debt factoring

Where organisations which has sold goods on credit sells its debt to a factor specialising in collecting debts. The factor then collects and keeps the debts

New cards
88

Adv of debt factoring

The factor chases up the unpaid debt which saves the organisation time and money

New cards
89

Disadv debt factoring

Lose money as factor buys at a discount

New cards
90

What is selling an assets

Sale of a non current asset for cash

New cards
91

Adv of selling assets

Selling the assets generate a large cash injection

No longer responsible for repairs and maintenance

New cards
92

Disadv of selling assets

Reduces assets available to offer as security on loans therefore it could make it difficult to secure finance in the future

New cards
93

What is a bank loan

An agreed amount of money borrowed from the bank which is paid back in instalments with added finance charges

New cards
94

Adv of bank loan

Repaid in instalments over a set period of time this makes it easier for organisations to budget

New cards
95

Disad of bank loan

Added finance charges

New cards
96

What is a share issue

Selling shares in an organisation to raise finance sold on the stock exchange/or sold to invited parties

New cards
97

Adv share issue

Large amount of capital can be raised

New cards
98

Disadv of share issue

Admin costs are expensive

In issuing shares the organisation is spreading ownership

Dividends have to be paid to shareholders

New cards
99

What is leasing

Acquiring use but not ownership of an asset through making rental payments

New cards
100

Adv of leasing

Usually maintenance and upgrade provided by leasing company

New cards

Explore top notes

note Note
studied byStudied by 1 person
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 11 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 214 people
Updated ... ago
5.0 Stars(2)
note Note
studied byStudied by 39 people
Updated ... ago
4.0 Stars(1)
note Note
studied byStudied by 12 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 5 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 12 people
Updated ... ago
5.0 Stars(1)
note Note
studied byStudied by 6 people
Updated ... ago
5.0 Stars(1)

Explore top flashcards

flashcards Flashcard32 terms
studied byStudied by 1 person
Updated ... ago
5.0 Stars(1)
flashcards Flashcard61 terms
studied byStudied by 53 people
Updated ... ago
5.0 Stars(2)
flashcards Flashcard52 terms
studied byStudied by 9 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard296 terms
studied byStudied by 4 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard51 terms
studied byStudied by 83 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard48 terms
studied byStudied by 33 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard20 terms
studied byStudied by 21 people
Updated ... ago
5.0 Stars(1)
flashcards Flashcard49 terms
studied byStudied by 14 people
Updated ... ago
5.0 Stars(1)