Management Activities

Question 1

Planning Definition

Answer 1

Planning is the setting down of specific goals and objectives and the putting in place of strategies that allow you to achieve the stated goals and objectives of the business

Question 2

Swot analysis

Answer 2

Strengths - Advantage e.g excellent staff

Weaknesses - disadvantage e.g. Not enough money

Opportunities - external factors (positive) e.g. New countries join EU

Threats - external factors (negative) e.g. Competition from new countries EU joining EU

Question 3

Types of planning

Answer 3

1. Manpower planning
2. Mission statement
3. Tactical plans
4. Strategic plans
5. Operational plans
6. Contingency plans

Question 4

1. Manpower planning

Answer 4

Ensuring that the business had the right amount of employees with the rights skill throughout the business

Step 1 - Forecast future Demand
Step 2 - Calculate existing supply
Step 3 - Recruit or make redundant

Question 5

2. Mission statement

Answer 5

Sets out the reasons for the business’ existence

What the business does and plans and what values they believe in

Question 6

3. Tactical plan (1-2 years)

Answer 6

• Short term plan
• Stepping stone for longer term plan

E.g Ryanair, new routes, marketing, cost cutting.

Question 7

4. Strategic plan (5+ years)

Answer 7

• Long term plan
• Sets out whole vision of business
• Decided by the board of directors

E.g Irish business wants to export all their products to the USA by 2030

Question 8

5. Operational plan

Answer 8

• Short term
• Projecting future sales
• Once projected managers can make sure the correct quantity of goods are available

Question 9

6. Contingency plan

Answer 9

Back up or emergency plan in the case of unexpected circumstances

Question 10

Advantages/Importance of planning

Answer 10

1. Helps raise finance
   - business plan
2. Provide greater unity
   - mission statement
3. Forces mangers to think about the future
   - strategic planning
4. Identifies the business weaknesses
   - SWOT

Question 11

Effective planning

Answer 11

Specific

Measured

Agreed

Realistic

Timed

(Effective plan is a smart plan)

Question 12

Organising Definition

Answer 12

Involves arranging all the resources of the business into the most suitable form to achieve its objectives

Question 13

Functional organisational structure

Answer 13

Managing director

Marketing manager - sales representatives

Finance manager - accountants

Production - Factory workers

Human resource - Personal assistants

Question 14

Functional organisational structure Advantages/Disadvantages

Answer 14

Adv

1. Specialisation
2. Accountability

Disadv

1. Isolation
2. Co-ordination

Question 15

Product organisation structure

Answer 15

CEO

Cadburys flake manager - 
Marketing manager
Finance manager
Production manager
Human resource manager

Cadburys crunchier manager - 
Marketing manager 
Finance manager 
Production manager
Human resource manager

Question 16

Product organisation structure Advantages/Disadvantages

Answer 16

Adv

1. Specialisation
2. Accountability
3. Clarity

Disadv

1. Isolation
2. Negative competition
3. Duplication of work

Question 17

Geographical organisation

Answer 17

CEO

Manager vodafone UK - 
Marketing manager
Finance manager
Production manager 
Human resource manager 

Manager vodafone Ireland 
Marketing manager
Finance manager 
Production manager 
Human resource manager

Question 18

Geographical organisational structure

Advantages/Disadvantages

Answer 18

Adv

1. Serve local needs better
2. Competition
3. Lower costs

Disadv

1. Duplication
2. Conflict

Question 19

Matrix organisational structure (working in temporary projects)

Answer 19

Managing director

Marketing department
Finance department
Production department

Team A
Team B

Question 20

Matrix organisational structure (Advantages/Disadvantages)

Answer 20

Adv

1. Motivation
2. Better relationships
3. Shared skills and expertise

Disadv

1. Two bosses
2. Only one voice is heard
3. Talking shop - all talk no action

Question 21

Span of control

Answer 21

Number of employees that speak directly to the manager. The number of employees that a manger can effectively supervise

Question 22

Types of span of control

Answer 22

Wide - Supervise a lot of employees effectively at the same time
Narrow - supervise only a few employees effectively at the same time

Question 23

What does a managers span of control depend on?

Answer 23

• Managers experience and ability
• Employees experience and ability
• The type of work that has to be done
• Outside pressure on the manager
• Location of employees

Question 24

What is a chain of command?

Answer 24

Shows how orders flow from management to workers

Question 25

What is delayering?

Answer 25

The process of stripping away layers of middle management. Speeds up communications.

Question 26

Advantages/Importance of organising

Answer 26

1. Everyone in the business knows who to go to with a problem 2. Makes it more effective 3. Saves time 4. Work gets done quicker

Question 27

Controlling Definition

Answer 27

This involves the manger making sure that that the business stays on target to achieve the objectives that were set during planning

Question 28

Stock control

Answer 28

Keeping optimum stock levels leading to efficiencies because you have the right stock in the right place at the right time to meet production requirements and satisfy consumer demands

Question 29

Advantages/Importance of stock control

Answer 29

Lower insurance costs less theft Improved public relations

Question 30

Just in time

Answer 30

Stock control technique/system. It involves buying from a supplier who delivers the exact right amount of perfectly made stock at exactly the time when it is going to be used by the business

Question 31

ISDN

Answer 31

``` Integrated Services Digital Network Eliminates costs associated with too much stock i.e. -Storage costs -Deterioration -Pilferage -Tied up capital ```

Question 32

Quality control

Answer 32

Is concerned with inspecting work done to ensure it meets the required standards.High level of quality is needed at every stage of production

Question 33

How is quality control implemented in a business

Answer 33

1. Inspection (Random or trained inspector) e.g Val Halen put random things in clause 2. Quality circles - employees spotting problems and coming up with suggestions 3. ISO 9000 - award for consistent high quality - Will Increase exports

Question 34

Advantages of quality control

Answer 34

1. Lower costs - no returns 2. Increased sales 3. More motivated employees

Question 35

Credit control definition

Answer 35

To ensure all customers pay their bills in full and on time

Question 36

How is good credit control implemented in a business

Answer 36

1. Set a credit limit - max amounts of goods a consumer can buy on credit 2. Run a credit check - creditworthy (talk to other suppliers to find out) 3. Discounts for early payments - As an incentive 4. Have a procedure for collecting bad debts - E-mail - Call - Solicitor

Question 37

Advantages of credit control

Answer 37

1. Ensures that a business receives its money | 2. Reduces costs. Avoids losing money on bad debts

Question 38

Advantages/Importance of controlling

Answer 38

1. Makes sure that the business achieves its objectives 2. Reduces costs (less faulty products) 3. Improves cash flow 4. Increases sales