Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Busi 5th ch 16-18
| Question | Answer |
|---|---|
| Competition | The rivalry between businesses in the same industry. Businesses compete against one another on issues such as price, customer service and design in order to increase sales and gain market share |
| Direct competition | Businesses selling the same product or service. The products and services are substitutes for each other and quite similar. E.g, Domino’s Pizza and Four star pizza |
| Indirect competition | Competition between companies offering different products or services that fulfil the same need. E.g Domino’s pizza & takeaway food outlets |
| Competitive advantage | Something that makes a business unique, adds value for their customers compared to their rivals and gives them an advantage. E.g Aldi. A firm’s competitive advantage is often it’s USP |
| Competitor analysis | The process of identifying competition in the market, analysing their strengths and weaknesses and comparing them with our own |
| Porter’s five forces model | Is a strategic management framework that a business can use to understand the competitive forces at work in their industry |
| Porter’s ‘5’ forces | 1. Competitive rivalry. 2. Supplier power. 3. Buyer power. 4. Threat of substitution. 5. Threat of new entrants |
| Steps to carry out the 5 forces analysis | 1. Define the industry. 2. Identify current situation. 3. Analyse industry attractiveness for each force. 4. Conclude - Industry attractiveness- Business strategy |
| Strategies for expansion (1) | Organic growth strategies; 1. Increase domestic sales. 2. New product diversification. 3. Exporting. 4. Licensing. 5. Franchising |
| Strategies for expansion (2) | Inorganic growth: 1. Merger. 2. Acquisition. 3. Strategic alliance |
| Online marketplace | Allows access to potentially millions of potential customers at a much lower cost than traditional advertising |
| New opportunities | E.g Platforms such as Shopify and Etsy enable people to set up an online store with minimal cost |
| Adapting to change | Businesses that embrace technology are often more flexible and can adapt quicker |
| Cost benefit analysis | An examination and evaluation of the financial and social costs and benefits of a project, decision or policy. Determines whether the benefits of the project/decision outweigh the costs |
| How to carry out a Cost-benefit analysis | 1. Identify goals & objectives; success criteria. 2. List cost & benefits; Begin with direct costs. 3. Quantity costs & benefits. 4. Compare costs & benefits; Total up both lists & compare them. 5. Make recommendations and implement |
| Leadership | The ability to inspire, influence and guide people towards achieving common vision or goal. It involves taking risks, building relationships and encouraging innovation |
| Management | The process of planning, organising & controlling resources to achieve specific business objectives efficiently & effectively |
| What is the role of a leader in a business | Leader, provides a vision for the business. This helps inspire staff and foster innovation to help achieve long-term success |
| What is the role of a manager in a business | Manager, organises all of the available resources so that the business can meet it’s day-to-day objectives |
| How does a leader promote innovation | Leader, promotes creative thinking and try to inspire and enable staff to offer ideas |
| How does a manager promote innovation | Manager, implements plans and measures progress |
| Do leaders take risks | Leaders, take risks. They’re willing to try new things know failure is a possibility |
| Do managers take risks | Managers, focus on controlling risks. They try to minimise uncertainty. |
| Leaders; people management | Leader, they try influence employees by building relationships, inspiring trust and building a positive organisational culture |
| Management; people management | Manager, they organise staff into defined roles with clear responsibilities |
| Leadership & management skills | They work together, both are essential and compliment each other. Both require excellent communication skills and good problem solving |
| Organisational culture | Is the shared values, beliefs, attitude, systems and practices that determine & influence the actions of all employees and team members in an organisation |
| What is the importance of organisational culture and innovation | 1. Brand identity. 2. Employee retention. 3. Productivity and innovation. 4. Customer satisfaction. 5. Ethical behaviour. 6. Less workplace conflict |
| Types of leadership | Autocratic, democratic and laissez-faire |
| Autocratic leadership | Authoritarian, boss-centered approached, assume full control of the group goals and decisions, centralised power, seek little to no input e.g Elon Musk |
| Strengths of autocratic leadership | With low skilled followers who need direction. Help suppress conflict temporarily. When quick decisive decisions are needed. |
| Weaknesses of autocratic leadership | Demanding & stressful style for both leadership & followers. Followers take less initiative. Turnover is high |
| Democratic leadership | Take a collaborative approach. Solicit feedback and input to make decisions. Listen to a range of opinions. Encourages intrapreneurship |
| Strengths of Democratic leadership | High quality, informed decisions. Followers are more creative and innovative. Good communication with followers. |
| Weaknesses of democratic leadership | Not as helpful when pressure is high and time is short. Not as useful when they aren’t trustworthy. Not practical when consensus & harmony are not possible |
| Laissez-faire | Hands off style of leadership. Staff are free to organise their own work to ensure they achieve organisations goals. Manager acts as a facilitator. Don’t micro manage. E.g Wareen Buffet, CEO of Berkshire Hathaway |
| Strengths of laissez-faire | Works when followers are highly educated, skilled & educated. Can work in creative industries when works are driven. Requires less top down pressure. |
| Weaknesses of laissez-faire | Productivity is low in most cases. Not helpful when followers ambiguity is high. Leader may not detect under-performance |
| Workplace conflict | Any form of disagreement or dispute that arises between employees, teams or management. |
| Reasons for conflict | Communication issues, unclear instructions, misinterpretation. Personality/values clashes. Limited resources, if employees are competing to use equipment. Dispute over pay |
| Remote working dis and adv; employee | Adv; Cost effective, time efficient. Dis; distractions, no over the desk informal communication occurs, feeling like your “always on” |
| Remote working dis and adv; employer | Adv; less offices to rent, increased employee retention and attracting new employees. Dis; Can’t give instant input, harder to monitor work, impact negatively on company culture |
| Impact of workplace conflict | Morale declines, increased absenteeism, decrease employee retention, productivity falls, innovation declines |
| Internal Ways to prevent conflict | Encourage open communication; active listening. Provide or attend training on conflict resolution. Negotiation or bargaining; both sides working together to find a compromise |
| External ways to prevent conflict | Arbitration, mediation, conciliation |
Created by:
Louie Masterson