acronyms term three

Question 1

features of effective management

Answer 1

POLC

Planning (the process of setting objectives)

Organizing (actualizing goals and plans)

Leading (influencing or motivating people to work towards business objectives)

Controlling (comparing what was intended to happen to what actually occurred)

Question 2

skills of management

Answer 2

F VIP CARDS:

Flexibility
Vision
Interpersonal skills
Problem-solving
Communication
Adaptability to change
Reconciling the conflicting interests of stakeholders
Decision making
Strategic thinking

Question 3

management approches

Answer 3

1. classical (organising, planning controlling)
2. behavioural (leading, motivating, communicating)
3. contingency approach (adapting to changing circumstances)

Question 4

classical approach (management approaches)

Answer 4

management as planning, organising and controlling:

Planning: preparation of predetermines course of action for a business

• strategic: long-term planning for 3-5 years
• tactical: medium term (1-2 years)
• operational: Short-term planning includes how the business will be run daily

Organising: involves organising workplace structure
- determining work activities
- assigning work

Controlling: process of evaluating performance and taking corrective action

HIERARCHICAL ORGANISATIONAL STRUCTURE

AUTOCRATIC LEADERSHIP STYLE

Question 5

Behavioural approach (management approaches)

Answer 5

Management as leading motivating and communicating:

Leading: process of influencing people to work towards the businesses objectives

motivating: process of encouraging employees to get work done supportivley

communicating: exchanging information verbally and non verbally

A flat organisational structure
- teams

democratic leadership style

Question 6

contingency approach

Answer 6

Refers to management that stresses the need for flexibility and adaptation of management practices and ideas to suit changing circumstances

Adapting to changing circumstances:
- managers are adaptable and flexible
- share vision with stakeholders
- encourages ethical business behavior

Question 7

importance of a business plan

Answer 7

essential for business sucsess as it can help forecast the future.

A business plan should contain:
1. a clear concise statement of business goals

2. Develop plans of how to achieve those goals
3. reliable control standards for measuring performance

Question 8

management staffing and teams

Answer 8

management: must mke the best use of resources to help business achieve its goals

staffing: refers to having motivated and determined employees

• to improve staffing may:
  1. skills audit: establishes the current skills of employees and the future skills needed

2. skills inventory - a database containing information on the skills, abilities and qualifications of existing staff

Teams: A group that collectively works together to ensure tasks are ahcived

Question 9

trend analysis

Answer 9

the process of investigating changes over time and looking for a pattern of trend to forecast the future:

can help forecast
- potential sales revenue
- availability of labor
- total operating costs
- gross and net profits

Question 10

identifying and sustaining competitive advantage

Answer 10

competitive advantage = strategies the business will implement to maintain competitive advantage

ELEUD

Efficiency of operations - streamline processes

Low-cost labor - occurs in asian and African regions

Economies of scale - where the business tries to reduce its costs

Use of technology - use of technology

Differentiation strategy

Question 11

avoiding overextension of finance and other resources:

Answer 11

a business can overextend financially by:

• hiring, purchasing, or renting equipment, cars, furniture and machinery
• purchasing excess stock
• employing too many staff of the business’s current needs

This can happen by:
- not borrowing enough capital
- borrowing too much
- not having enough cashflow

Question 12

using technology

Answer 12

refers to E-business where the Internet is used to conduct business

• online websites can assist sales
• machinery/robotics can reduce HE
• if not used business can lose a competitive advantage

Question 13

economic conditions

Answer 13

when an economy is in a boom:
- consumers will increase their spending
- they will be confident that they have secure jobs

when an economy is in a turndown:
- consumers will not be spending as much

• rising unemployment rates

Question 14

responding to internal and external influences

Answer 14

responding to external influences:

1. transformational - a complete restructure of the business eg business location, organisational structure
2. incremental change - results in minor changes usually involving a few employees and some smaller changes eg training

when a business responds to the influence of change it will undergo change in their

Business culture
Operations
Human resources
Organisational structure

Question 15

managing change effectively

Answer 15

managing change will be effective if the business can: ISDU

1. identify the need for change
2. set achievable goals
3. develop strategies to overcome resistance to change
4. use management consultants

Question 16

management consultants

Answer 16

specialise in a range of business areas

management consultants have:
- specialised knowledge and skills
- an external viewpoint

Question 17

total revenue

Answer 17

total revenue = price x quantity sold

Question 18

total cost

Answer 18

TC = fixed cost + variable cost

Question 19

break-even analysis

Answer 19

Total costs = total revenue

TR < TC = loss
TR > TC = profit

Question 20

how many products need to be sold to break even (quantity)

Answer 20

total fixed costs/unit price - variable costs

Question 21

cashflow statement

Answer 21

opening balance +total inflows - total outflows = closing balance

Question 22

resistance to change

Answer 22

FPRRRI - things that managers resist changing

Financial costs
Purchasing new equipment
Redundancy payments
Retraining
Reorganising plant layout
Inertia

Question 23

monitoring and evaluating

Answer 23

the process of measuring actual performance against planned

monitoring process:
1. establishing forecast
2. comparing actual performance

evaluation:
evaluating business performance to determine weather the goals have been achived

Question 24

three main areas of monitoring and evaluating

Answer 24

1. sales
2. budgets
3. profits

Question 25

taking coercive action

Answer 25

whilst monitoring and evaluating a business owner must take action to modify or improve business performance for it to be successful involves changing: - materials - management practices - human resources