Business Study

Part 1: Leadership Styles

  1. Commanding

    • Direct, "Do what I tell you" style.

    • Example: Drill sergeants.

  2. Pacesetting

    • Sets high standards, leads by example.

    • Example: Sales manager.

  3. Visionary

    • Inspires others toward a shared vision.

    • Example: Startup CEOs, project managers.

  4. Affiliative

    • Focuses on people, making them feel valued.

    • Example: School principals, HR.

  5. Democratic

    • Involves everyone in decision-making.

    • Example: Cabinet members, MPs.

  6. Coaching

    • Helps people grow and improve.

    • Example: Sports coaches, conditioning coaches.

Use of Multiple Leadership Styles

  • Combining styles often more effective.

  • Example: Drill sergeant using both pacesetting and commanding motivates soldiers better.

Part 2: Needs, Wants, and Obsolescence

  1. Needs

    • Essential for survival (e.g., food, water, shelter).

  2. Wants

    • Improve quality of life or business (e.g., new car, laptops for employees).

  3. Types of Obsolescence

    1. Indirect - Product unusable due to lack of spare parts.

      • Example: Old car with no replacement parts.

    2. Functional - Key part fails, rendering device useless.

      • Example: Broken motor in washing machine.

    3. Incompatibility - Lack of updates/support.

      • Example: Old smartphone with no OS updates.

    4. Psychological - Newer model makes old seem outdated.

      • Example: Yearly phone upgrades.

    5. Aesthetic - Replaced for style, not function.

      • Example: Swapping a functional fridge for a sleeker model.

    6. Expiration - Forced replacement after a set date.

      • Example: Food with a "best before" date.

Maslow's Hierarchy of Needs and Workplace

  • Meeting basic employee needs (e.g., fair pay, job security) leads to higher engagement and satisfaction, improving customer happiness.

Part 3: CSR and Greenwashing

  1. CSR (Corporate Social Responsibility)

    • Companies have a responsibility to society.

    • "Triple bottom line": people, planet, profit.

  2. Greenwashing

    • Companies misleadingly market themselves as eco-friendly.

Examples of CSR

  • Successes:

    • Patagonia - 1% profits to environmental causes.

    • Microsoft - renewable energy, community skills.

  • Failures:

    • Volkswagen - “Dieselgate” emissions scandal.

    • Nestlé - Water bottling criticized during droughts.

Part 4: Types of Businesses

  1. Sole Proprietorship

    • Owned by one person; full responsibility.

    • Example: Small bakery.

  2. Partnership

    • Owned by two or more people; shared profits.

    • Example: Law firm.

  3. Corporation

    • Separate legal entity, owned by shareholders.

    • Example: Apple Inc.

  4. Franchise

    • Franchisee buys rights to use brand.

    • Example: McDonald’s locations.

Liabilities, Advantages, and Disadvantages

  • Each type has different liability (e.g., sole proprietors are personally liable).

  • Advantages/disadvantages vary by structure (e.g., corporations have limited liability but are complex to manage).