Chapter 1.3

Question 1

Profit organisations

Answer 1

-The measure of performance is profit.

-They have to worry about money

Question 2

Non-profit/Not for profit
organisations

Answer 2

-The measure of performance is more difficult; it still needs to be done to determine whether they are fulfilling their purposes or not.

-The making of profit for distribution to the owners of the organisation is not their main focus.

Question 3

Additional factors to consider to fully understand what managers do in practice

Answer 3

-Managers make decisions
-Managers manage change
-Managers ensure that their organisations behave responsibly

Question 4

Decisions that have to be made when planning

Answer 4

-What are the goals and objectives?

-Which strategies are most suitable?

-Is the vision a true reflection of the organisation’s dream?

-Does the mission statement reflect the true reason why the business exists?

Question 5

The functional areas of a business organisation

Answer 5

F-L-O-P H-M

-Finance
-Logistics
-Operations
-Public Relations

-Human Resources
-Marketing

Question 6

Finance

Answer 6

Responsible for managing the finances of the organisation

Question 7

Logistics

Answer 7

Responsible for ensuring the most efficient and cost-effective means of physically distributing products

Question 8

Operations

Answer 8

Manufacturing and concerned with producing products and services that meet the needs and wants of consumers

Question 9

Public relations

Answer 9

Purchasing the raw materials and resources of the right quality at the right price at the right time

Question 10

Human resources

Answer 10

Responsible for ensuring that the right people with the right skill are employed and that they’re appropriately rewarded

Question 11

The fundamental success drivers that underpin a sustainable competitive advantage

Answer 11

-Innovation
-Quality
-Speed
-Cost competitiveness

Question 12

Innovation

Answer 12

introduction of new goods and services or new business models

Question 13

Quality

Answer 13

refers to the excellence of a product or service

Question 14

Speed

Answer 14

separates the winners from the losers in a competitive business arena

Question 15

Cost competitiveness

Answer 15

Costs are kept low enough to enable you to realise profits and price your products at levels that are attractive to consumers

Question 16

Six key managerial competencies that managers need to master in order to be effective:

Answer 16

P-E-S-T G-C
-Communication competency

-Planning and financial management competency

-Teamwork competency

-Strategic action competency

-Global awareness competency

-Emotional intelligence and self-management competency