Training Pro’s & con’s On-the-job Learning from other workers Mentoring Job rotation Apprenticeships Graduate training Output being produced Relevant learning that will be implemented Cheaper than alternative forms Easy to organise Output may be faulty May be...
Organisation Structures Implications of organisational structures Tall: Span of control small, tighter control over subordinates making more easily supervised Creates clear route for promotion acting as a motivator Long chain of command creating poor communication...
Decision making Centralised: Decision made at the top of the hierarchy Multi location markets Control is maintained to keep consistency of customer experience and quality Encourages layers creating higher costs Act as demotivator for junior managers as they have no...
Motivation Financial incentives Piecework - Taylor; produce more get paid more. Only applicable where volume of worker can be measured. However, can cause equity to decline as workers rush production to get more units made PRP - extra pay for achieving targets....
Motivation Theorists Taylor Money = motivation Pay based on output Use quickest method Not always best - quality suffers View people as machines Mayo – Hawthorne Papers Working conditions Skills Financial incentives Communication/Teamwork Seen as bias to managers...
Leadership style Advantages disadvantages AUTOCRATIC Manager sets objectives allocates tasks and insists on obedience. Group becomes dependent on leader; members are often dissatisfied. Quicker decision making, centralised with leader Leader has complete control...
Stages of setting up a business Idea Research Planning Financing Location Resources Launch
Running/expanding a business Financial management Admin Purchasing Managing people
Barriers to setting up a business Lack of finance Legal barriers Lack of skills Lack of ideas Fear of failure
Business objectives Survival Profit maximisation - costs as low as possible or prices as high as possible; skim pricing = AID GROWTH Sales maximisation - raise profit = more output allowing larger market share. Market share - common objective for large...
Forms of business Advantages Disadvantages SOLE TRADER One individual Aim - survival Control Flexible + adopt to change Owner keeps profit Unlimited liability Struggle to raise finance Too small to exploit economies of scale PARTNERSHIP 2 - 20 people Aim -...
How the Boston Matrix can be used to manage the product portfolio Balancing product lines Businesses must ensure that their product portfolios do not contain too many items within each category. Naturally, they do not want lots of dogs, but they should also...
Marketing Strategies Outbound marketing strategies This involves directing marketing material at potential customers whether they are expecting it or not. This could include sending direct mail, email, telemarketing, sponsorships, targeted adverts in specialist...
Staff Staff as an asset - value employee’s, concern for their welfare. They recognise managerial efforts will help staff performance so productivity increase Staff as a cost - minimise cost at every opportunity, leads to poor motivation and low productivity. High...
Employer/Employee Relations The relationship can impact on performance If happy = motivated and productive Rates of pay Employer wants wages suppressed Employee wants higher wages for own personal standards of living New technology Employer wants it to increase output...
Recruitment Internal recruitment (vice versa for external) Act as a motivator - want to perform well to impress management Cheaper, no adverts Familiar with procedures - be more productive in first year due to little training costs Employee knows candidates’...
Supply Chain Direct selling to consumers: Methods include the following: The internet Direct mail Door-to-door selling Mail order catalogues Direct response adverts Shopping parties Telephone selling Retailer: These are businesses that buy goods and sell them straight...
Markets Market - where buyers and sellers come together Marketing - techniques that sellers undertake Brand - distinguish, differentiate, create image. Beneficial in mass market to be able to charge premium prices NICHE; small market with specific needs Charge premium...
Supply & Demand Demand; is the amount of a product that consumers are willing and able to purchase at a given price FACTORS LEADING TO A CHANGE IN DEMAND: Price of substitutes Price of complements Change in consumer income Fashion, tastes and preferences...
Design Mix/Trends The design mix: Provide sensory stimulation creating appeal. Designers should consider appearance, size/shape, presentation and element/function. As costs fall overtime aesthetics become more important. Function. A product/service must be fit for...
Promotion Informative, increase consumer awareness Persuasive, pressure consumers to buy a product from a certain brand over rivals targeted at emotions e.g. fear or use celebrity endorsement Reassuring, aimed to existing customers ABOVE THE LINE = MEDIA BELOW THE...
Pricing Methods Cost Plus Pricing Adding a mark-up to unit costs. The mark-up is usually a % of the unit cost. This method is common with retailers. Ignores market conditions Difficult to identify precisely all the costs associated with the production of a product-...